S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6789
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 17, 2021
                                ___________
 
 Introduced  by  Sen. PERSAUD -- read twice and ordered printed, and when
   printed to be committed to the Committee on Disabilities
 
 AN ACT to amend the social services law, the abandoned property law, the
   arts and cultural affairs law, the banking law, the criminal procedure
   law, the debtor and creditor law,  the  domestic  relations  law,  the
   education  law, the executive law, the family court act, the insurance
   law, the judiciary law, the mental hygiene law, the public health law,
   the public lands law, the private housing finance law, the real  prop-
   erty  actions  and  proceedings  law,  the real property law, the real
   property tax law, the tax law, the facilities development  corporation
   act,  and  the medical care facilities finance agency act, in relation
   to replacing certain instances of the term mentally retarded or  vari-
   ations  of  such  term with the term intellectually or developmentally
   disabled or variations of such term
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 477 of the social services law, as
 amended  by  chapter  550  of  the  laws  of 1978, is amended to read as
 follows:
   1. All mentally ill, [mentally retarded]  INTELLECTUALLY  OR  DEVELOP-
 MENTALLY DISABLED, blind and deaf and mute persons, the expense of whose
 support  and  maintenance now is, or, under the laws of the state of New
 York, may become a charge upon the city of Poughkeepsie, or  the  county
 of Dutchess, exclusive of said city, or both, and who are maintained, or
 shall  be  maintained,  in  any  of the institutions of the state of New
 York, shall be supported by said county of Dutchess as one district.
   § 2. Section 215 of the abandoned property law, as amended by  chapter
 550 of the laws of 1978, is amended to read as follows:
   §  215.  Claims  against state. Where an action has been commenced and
 final judgment in favor of the people entered therein by reason  of  the
 escheat  of  real  property to the people and the said property has been
 sold pursuant to section two hundred four, any party or parties thereto,
 or their successors in interest, who, but  for  the  rendering  of  such
 final  judgment  would  have  been entitled to such real property, or an
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11409-03-1

 S. 6789                             2
 
 interest therein, shall have a claim against the state for the value  of
 such  real property or interest therein at the time of the entry of such
 judgment, but no such claim shall  exist  in  favor  of  such  party  or
 parties or their successors in interest unless a petition therefor shall
 have  been  filed  as hereinafter provided within fifteen years from the
 date of entry of such final judgment unless such  party  or  parties  to
 such  ejectment  action shall have been, at the time of the commencement
 of such action or entry of final judgment, incompetent to conduct his or
 her affairs by reason of mental illness or [mental  retardation]  INTEL-
 LECTUAL  OR DEVELOPMENTAL DISABILITY or have been under the age of eigh-
 teen years, or be imprisoned in execution upon conviction of a  criminal
 offense,  in  which  event  the  period  of such disability shall not be
 deemed to be a part of the time limited within which such  petition  may
 be  filed.  Such party or parties, or their successors in interest shall
 petition the commissioner of general services for payment of the sum  or
 a  part  thereof  received  by the state, upon the sale made pursuant to
 section two hundred four, and the said commissioner  if  satisfied  that
 the  claim  is  just and is made by a party who, except for the entry of
 final judgment in an action authorized by section two hundred one  would
 have  been entitled to the real property or an interest therein affected
 by said action, may certify such facts to the court of claims, whereupon
 that court is empowered and authorized to determine the amount  of  such
 claim  or  claims  and award judgment therefor, the total of which in no
 event shall exceed the amount received by the people upon  the  sale  of
 said real property pursuant to section two hundred four.
   §  3.  Paragraph (d) of subdivision 1 of section 35.07 of the arts and
 cultural affairs law is amended to read as follows:
   (d) In any illegal, indecent, or immoral exhibition or practice; or in
 the exhibition of any such child when mentally ill, [mentally  retarded]
 INTELLECTUALLY  OR  DEVELOPMENTALLY  DISABLED,  or  when  presenting the
 appearance of any deformity or unnatural physical formation or  develop-
 ment; or
   § 4. Paragraph (a) of subdivision 3 of section 100 of the banking law,
 as  amended  by  chapter  115 of the laws of 1981, is amended to read as
 follows:
   (a) As guardian, receiver, trustee, committee or  conservator  of  the
 estate  of  any minor, mentally ill person, [mentally retarded] A person
 WITH AN INTELLECTUAL OR  DEVELOPMENTAL  DISABILITY,  person  of  unsound
 mind, alcohol abuser or conservatee or in any other fiduciary capacity;
   §  5. Subdivision 3 of section 100-a of the banking law, as amended by
 chapter 115 of the laws of 1981, is amended to read as follows:
   3. Committee of incompetent or conservator of a conservatee. Any court
 having jurisdiction to appoint a trustee, guardian, receiver,  committee
 of  the estate of a mentally ill person, [mentally retarded] person WITH
 AN INTELLECTUAL OR DEVELOPMENTAL DISABILITY or alcohol abuser or conser-
 vator of the estate of a conservatee, or to make any fiduciary  appoint-
 ment,  may  appoint  any  trust  company  to  be such trustee, guardian,
 receiver, committee or conservator, or to act  in  any  other  fiduciary
 capacity.
   § 6. Paragraph (d) of subdivision 1 and the opening paragraph subdivi-
 sion 2 of section 330.20 of the criminal procedure law, paragraph (d) of
 subdivision  1  as  amended  by  chapter 672 of the laws of 2019 and the
 opening paragraph of subdivision 2 as amended by chapter 693 of the laws
 of 1989, are amended to read as follows:
   (d) "Mentally ill" means that a defendant  currently  suffers  from  a
 mental  illness for which care and treatment as a patient, in the in-pa-

 S. 6789                             3
 
 tient services of a psychiatric center under  the  jurisdiction  of  the
 state  office of mental health, is essential to such defendant's welfare
 and that his OR HER judgment is so impaired that he is unable to  under-
 stand  the  need for such care and treatment; and, where a defendant [is
 mentally retarded] HAS AN INTELLECTUAL OR DEVELOPMENTAL DISABILITY,  the
 term  "mentally ill" shall also mean, for purposes of this section, that
 the defendant is in need of care and treatment  as  a  resident  in  the
 in-patient  services  of  a  developmental  center  or other residential
 facility for [the mentally retarded and developmentally disabled]  INDI-
 VIDUALS WITH INTELLECTUAL OR DEVELOPMENTAL DISABILITIES under the juris-
 diction of the state office for people with developmental disabilities.
   Upon entry of a verdict of not responsible by reason of mental disease
 or defect, or upon the acceptance of a plea of not responsible by reason
 of  mental  disease or defect, the court must immediately issue an exam-
 ination order. Upon receipt of such order, the commissioner must  desig-
 nate  two  qualified psychiatric examiners to conduct the examination to
 examine the defendant. In conducting their examination, the  psychiatric
 examiners may employ any method which is accepted by the medical profes-
 sion  for  the  examination  of  persons  alleged to be suffering from a
 dangerous mental disorder or to be mentally ill or [retarded]  INTELLEC-
 TUALLY  OR  DEVELOPMENTAL DISABLED.   The court may authorize a psychia-
 trist or psychologist retained by a defendant  to  be  present  at  such
 examination.  The clerk of the court must promptly forward a copy of the
 examination order to the mental hygiene legal service and  such  service
 may  thereafter  participate  in  all  subsequent proceedings under this
 section.
   § 7. Section 251 of the debtor and creditor law, as amended by chapter
 115 of the laws of 1981, is amended to read as follows:
   § 251. Authority for committee or conservator to compromise claims.  A
 court  exercising  jurisdiction  over  the  property  of  a mentally ill
 person, [mentally retarded] A person WITH AN  INTELLECTUAL  OR  DEVELOP-
 MENTAL  DISABILITY, alcohol abuser or conservatee may, upon the applica-
 tion of the committee of the property of such incompetent person or  the
 conservator of the conservatee, and for good and sufficient cause shown,
 and upon such terms as it may direct, authorize the committee or conser-
 vator to sell, compromise or compound any claim or debt belonging to the
 estate  of  the  incompetent  person  or conservatee. But such authority
 shall not prevent any party interested in the trust estate, from showing
 upon the final accounting of such committee  or  conservator  that  such
 debt  or  claim  was  fraudulently  or  negligently  sold, compounded or
 compromised. The sale of any debt or claim heretofore made in good faith
 by any such committee or conservator, shall be valid, subject,  however,
 to  the approval of the court, and the committee or conservator shall be
 charged with and liable for, as a part of the trust fund, any sum  which
 might or ought to have been collected by him.
   § 8. Section 252 of the debtor and creditor law, as amended by chapter
 115 of the laws of 1981, is amended to read as follows:
   §  252.  Payment by committee or conservator of claims. A committee of
 the property of a person,  incompetent  by  reason  of  mental  illness,
 [mental retardation] A DEVELOPMENTAL OR INTELLECTUAL DISABILITY or alco-
 hol abuse, to manage his OR HER affairs, or a conservator of the proper-
 ty of a conservatee, may, under direction of the court exercising juris-
 diction of such estate, after payment of the expenses, disbursements and
 commissions  of  such  trust, apply so much of the funds and property of
 said estate remaining in his OR HER hands as such committee or conserva-
 tor, as may be necessary to pay and discharge the proper claims of cred-

 S. 6789                             4
 
 itors who have presented claims pursuant to the notice in  this  article
 provided  for,  to  the  payment  of such claims, and if the property so
 remaining be insufficient to pay such claims in full, then the committee
 or conservator may distribute the same according to law among the credi-
 tors  who  have  presented  and  proved  their claims as in this article
 provided, and such payment, when so made in good faith and under  direc-
 tion  of such court, shall relieve such committee or conservator and his
 OR HER sureties from liability to creditors who have failed  to  present
 their claims as in this article provided.
   § 9. The third undesignated paragraph of subdivision 1 of section 13-d
 of  the  domestic  relations law, as added by chapter 371 of the laws of
 1986, is amended to read as follows:
   Rubella infection poses a grave threat to the unborn child, especially
 during the first four months of pregnancy. It can lead  to  miscarriage,
 stillbirth, or one or all of the tragic defects such as deafness, blind-
 ness, crippling congenital heart disease, [mental retardation] INTELLEC-
 TUAL OR DEVELOPMENTAL DISABILITY and muscular and bone defects.
   §  10.  Subdivision 5 of section 115 of the domestic relations law, as
 amended by chapter 305 of the laws  of  2008,  is  amended  to  read  as
 follows:
   5. Where the petition alleges that either or both of the birth parents
 of  the  child have been deprived of civil rights or are mentally ill or
 [mentally retarded] INTELLECTUALLY OR  DEVELOPMENTALLY  DISABLED,  proof
 shall  be  submitted  that  such  disability  exists  at the time of the
 proposed adoption.
   § 11. Subdivision (c) of section 140 of the domestic relations law, as
 amended by chapter 550 of the laws  of  1978,  is  amended  to  read  as
 follows:
   (c)  Party a [mentally retarded] person WITH AN INTELLECTUAL OR DEVEL-
 OPMENTAL  DISABILITY  or  mentally  ill  person.    An action to annul a
 marriage on the ground that one of the parties thereto was  a  [mentally
 retarded] person WITH AN INTELLECTUAL OR DEVELOPMENTAL DISABILITY may be
 maintained at any time during the life-time of either party by any rela-
 tive  of  a  [mentally retarded] person WITH AN INTELLECTUAL OR DEVELOP-
 MENTAL DISABILITY, who has an interest to avoid the marriage.  An action
 to annul a marriage on the ground that one of the parties thereto was  a
 mentally ill person may be maintained at any time during the continuance
 of the mental illness, or, after the death of the mentally ill person in
 that  condition, and during the life of the other party to the marriage,
 by any relative of the mentally ill person who has an interest to  avoid
 the marriage.  Such an action may also be maintained by the mentally ill
 person  at any time after restoration to a sound mind; but in that case,
 the marriage should not be annulled if it appears that the parties free-
 ly cohabited as husband and wife  after  the  mentally  ill  person  was
 restored  to a sound mind.  Where one of the parties to a marriage was a
 mentally ill person at the time of the marriage, an action may  also  be
 maintained  by the other party at any time during the continuance of the
 mental illness, provided the  plaintiff  did  not  know  of  the  mental
 illness at the time of the marriage.  Where no relative of the [mentally
 retarded]  person  WITH  AN  INTELLECTUAL OR DEVELOPMENTAL DISABILITY or
 mentally ill person brings an action  to  annul  the  marriage  and  the
 mentally  ill  person is not restored to sound mind, the court may allow
 an action for that purpose to be maintained at any time during the life-
 time of both the parties to the marriage, by  any  person  as  the  next
 friend  of the [mentally retarded] person WITH AN INTELLECTUAL OR DEVEL-
 OPMENTAL DISABILITY or mentally ill person.

 S. 6789                             5
 
   § 12. Section 142 of the domestic relations law, as amended by chapter
 550 of the laws of 1978, is amended to read as follows:
   §  142.    Dismissal  of complaint in action by next friend to annul a
 marriage. Where the next friend of an infant, [mentally retarded] person
 WITH AN INTELLECTUAL OR DEVELOPMENTAL DISABILITY or mentally ill  person
 maintains  an  action  annulling  a  marriage, the court may dismiss the
 complaint if justice so requires, although, in a like case, the party to
 the marriage, if plaintiff, would be entitled to judgment.
   § 13. Paragraph (g) of subdivision 1 of section 414 of  the  education
 law,  as  amended by chapter 257 of the laws of 1976, is amended to read
 as follows:
   (g) For classes of instruction for  [mentally  retarded]  minors  WITH
 INTELLECTUAL  OR DEVELOPMENTAL DISABILITIES operated by a private organ-
 ization approved by the commissioner [of education].
   § 14. The section heading and subdivisions  1,  2  and  3  of  section
 1004-a  of the education law, the section heading and subdivisions 1 and
 3 as amended by chapter 1014 of the laws of 1974 and  subdivision  2  as
 separately  amended  by  chapters  474  and 475 of the laws of 1978, are
 amended to read as follows:
   Sheltered workshops for  [the  mentally  retarded,  mentally  ill  and
 severely physically handicapped] INDIVIDUALS WITH INTELLECTUAL OR DEVEL-
 OPMENTAL  DISABILITIES, MENTAL ILLNESS OR A SEVERE PHYSICAL HANDICAP. 1.
 Declaration of purpose. The conditions of [mental retardation] INTELLEC-
 TUAL OR DEVELOPMENTAL DISABILITY, mental  illness  and  severe  physical
 handicap  are  such  that many young people, after laborious training in
 the schools and otherwise, reach the point in their lives where they can
 and should, under proper and continued  guidance,  engage  in  sheltered
 employment.  The  effects  of such employment are salutary in many ways.
 The affected individual is helped to become  a  contributing  member  of
 society.  The state is saved the expense of his OR HER institutionaliza-
 tion in already overcrowded state schools  and  facilities.  The  family
 retains  closer  contact  with him and is spared the anxieties naturally
 attaching to separation and institutionalization. All of  these  factors
 have  also  been  shown  to  reflect tangible benefit upon [the mentally
 retarded, mentally ill and severely physically handicapped person] INDI-
 VIDUALS WITH INTELLECTUAL OR DEVELOPMENTAL DISABILITIES, MENTAL  ILLNESS
 OR A SEVERE PHYSICAL HANDICAP in improving his OR HER overall condition.
 The  purpose  of  this measure is to specifically encourage the develop-
 ment, improvement and expansion of such sheltered employment  facilities
 by  non-profit  agencies,  so that the salutary effects mentioned can be
 expediently accomplished.
   2. Special provisions relating to [mentally retarded, mentally ill and
 severely physically handicapped persons] INDIVIDUALS  WITH  INTELLECTUAL
 OR DEVELOPMENTAL DISABILITIES, MENTAL ILLNESS OR A SEVERE PHYSICAL HAND-
 ICAP  in extended sheltered employment in workshops. Notwithstanding any
 other provision of this article, when it shall appear to  the  satisfac-
 tion  of  the  department  that  [a  mentally  retarded, mentally ill or
 severely physically handicapped person] AN INDIVIDUAL WITH AN  INTELLEC-
 TUAL  OR  DEVELOPMENTAL  DISABILITY, MENTAL ILLNESS OR A SEVERE PHYSICAL
 HANDICAP over the chronological age of seventeen years can reasonably be
 expected to benefit from, or in his OR  HER  best  interests  reasonably
 requires  extended  sheltered  employment  in  a  workshop as defined in
 SUBDIVISION EIGHT OF section ten  hundred  two[,  subdivision  eight  of
 article  twenty-one] of this [chapter] ARTICLE, furnished by an approved
 non-profit organization, the department is authorized to  contract  with
 such  organization  for  the  furnishing of such sheltered employment to

 S. 6789                             6
 
 such [mentally retarded, mentally ill or severely physically handicapped
 person] INDIVIDUAL WITH AN  INTELLECTUAL  OR  DEVELOPMENTAL  DISABILITY,
 MENTAL  ILLNESS  OR  A  SEVERE  PHYSICAL HANDICAP; and the department is
 further  authorized  to  expend  for such purpose a sum or sums not less
 than one thousand five hundred dollars per annum for each such [mentally
 retarded, mentally ill or severely physically handicapped person]  INDI-
 VIDUAL  WITH AN INTELLECTUAL OR DEVELOPMENTAL DISABILITY, MENTAL ILLNESS
 OR A SEVERE PHYSICAL HANDICAP, for or towards the cost of providing such
 sheltered employment for each such [mentally retarded, mentally  ill  or
 severely  physically handicapped person] INDIVIDUAL WITH AN INTELLECTUAL
 OR DEVELOPMENTAL DISABILITY, MENTAL ILLNESS OR A SEVERE  PHYSICAL  HAND-
 ICAP.
   The  department  shall  pay at least quarterly during the state fiscal
 year such sums as are authorized to such organizations  for  such  shel-
 tered  employment  immediately  upon  the  completion  of evaluation and
 personal adjustment services under the sponsorship of the department.
   3. The department shall maintain a register of such  nonprofit  organ-
 izations which, after inspection of the facilities for sheltered employ-
 ment  provided  by  them,  it  deems qualified to meet the needs of such
 [mentally retarded, mentally ill  and  severely  physically  handicapped
 persons]  INDIVIDUALS  WITH  INTELLECTUAL OR DEVELOPMENTAL DISABILITIES,
 MENTAL ILLNESS OR A SEVERE PHYSICAL HANDICAP. Such inspection shall also
 determine the eligibility of such  organization  to  receive  the  funds
 hereinbefore specified.
   §  15. The opening paragraph of subdivision 8-a of section 1950 of the
 education law, as added by chapter 762 of the laws of 1972,  is  amended
 to read as follows:
   8-a.  Notwithstanding any other provision of this section and with the
 consent of the commissioner, the city school district  of  the  city  of
 Syracuse  may,  upon  consent  of  the  board of cooperative educational
 services for the sole supervisory  district  for  Onondaga  and  Madison
 counties,  be  included  as a component district for the sole purpose of
 operating a combined program and/or constructing a combined facility for
 [the trainable mentally retarded] children WITH INTELLECTUAL OR DEVELOP-
 MENTAL DISABILITIES in the city of Syracuse and the county of  Onondaga.
 Such  city  school  district shall add an amount to its budget and levy,
 collect and pay the  same  to  such  board  of  cooperative  educational
 services to defray the proportional expenses of constructing and operat-
 ing such facility for such children. Such city school district shall not
 be  liable  for  payment  of  administrative expenses as provided for in
 paragraph b of subdivision four of this  section  nor  shall  such  city
 school  district  be  eligible  for  the payment of state aid under this
 section except such city school district shall receive state  aid  based
 on  its proportionate share of building expenses related to this program
 as determined by the commissioner.
   § 16. Paragraphs a and b, subparagraphs 1 and 2 of  paragraph  c,  and
 subparagraphs  1,  8  and  13 of paragraph d of subdivision 5 of section
 3202 of the education law, paragraph a as added by  chapter  47  of  the
 laws  of  1977,  and  as  renumbered by chapter 563 of the laws of 1980,
 paragraph b as amended by section 26 of part B of chapter 57 of the laws
 of 2007, subparagraphs 1 and 2 of paragraph c and subparagraphs 1 and 13
 of paragraph d as amended by chapter  672  of  the  laws  of  2019,  and
 subparagraph  8  of  paragraph  d as added by chapter 721 of the laws of
 1979, and as renumbered by chapter 57 of the laws of 1993,  are  amended
 to read as follows:

 S. 6789                             7
 
   a.  Children  who reside in a school for [the mentally retarded] INDI-
 VIDUALS WITH INTELLECTUAL OR DEVELOPMENTAL DISABILITIES operated by  the
 department  of  mental  hygiene  and for whom the department has assumed
 responsibility for support and maintenance prior to July  one,  nineteen
 hundred  seventy-seven  and  who are placed in a family home at board, a
 duly incorporated orphan asylum  or  other  institution  for  the  care,
 custody  and  treatment  of children shall be admitted to the schools of
 the school district in which such family home or institution is located.
 The [education]  department  is  authorized  to  reimburse  each  school
 district furnishing educational services to such children for the direct
 cost  of such services in accordance with regulations promulgated by the
 commissioner and approved by the director of the budget. The educational
 costs for these children shall not be otherwise aidable or reimbursable.
   b. Children who reside in a school for [the mentally  retarded]  INDI-
 VIDUALS  WITH INTELLECTUAL OR DEVELOPMENTAL DISABILITIES operated by the
 department of mental hygiene and for whose support and  maintenance  the
 department assumes responsibility on or after July one, nineteen hundred
 seventy-seven and who are thereafter placed in a family home at board, a
 duly  incorporated  orphan  asylum  or  other  institution for the care,
 custody and treatment of children shall be admitted to  the  schools  of
 the school district in which such family home or institution is located.
 The  [education]  department  is  authorized  to  reimburse  each school
 district furnishing educational services to such children for the direct
 cost of such services in accordance with regulations promulgated by  the
 commissioner and approved by the director of the budget. The educational
 costs for these children shall not be otherwise aidable or reimbursable.
 The  school  district in which the child resided at the time the depart-
 ment of mental hygiene assumed responsibility for the support and  main-
 tenance  of  such child shall reimburse the education department for its
 expenditure on behalf of such child in an amount  equal  to  the  school
 district  basic  contribution,  as  such  term is defined in subdivision
 eight of section forty-four hundred one of this chapter. The comptroller
 may deduct from any state funds which become due to a school district an
 amount equal to the reimbursement required to be  made  by  such  school
 district  in  accordance with this paragraph, and the amount so deducted
 shall not be included in the operating expense of such district for  the
 purpose  of  computing  the approved operating expense pursuant to para-
 graph t of subdivision one of section thirty-six  hundred  two  of  this
 chapter.  The  department of mental hygiene shall notify the [education]
 department of the name of the child, the location of the family home  or
 institution  where  the child is to be placed and the name of the school
 district in which such child resided  at  the  time  the  department  of
 mental hygiene assumed responsibility for his or her support and mainte-
 nance.
   (1)  The [education] department is authorized to reimburse each school
 district furnishing educational services to children residing in schools
 for [the mentally retarded] INDIVIDUALS WITH  INTELLECTUAL  OR  DEVELOP-
 MENTAL DISABILITIES operated by the office for people with developmental
 disabilities  for  the  direct  cost of such services in accordance with
 regulations promulgated by the commissioner and approved by the director
 of the budget.
   (2) The school district in which each such child resided at  the  time
 the  office for people with developmental disabilities assumed responsi-
 bility for the support and maintenance of such child shall reimburse the
 [education] department for its expenditures on behalf of such child,  in
 an  amount  equal to the school district basic contribution as such term

 S. 6789                             8
 
 is defined in subdivision eight of section  forty-four  hundred  one  of
 this  chapter,  for  any  such child admitted to a state school for [the
 retarded] INDIVIDUALS WITH INTELLECTUAL OR DEVELOPMENTAL DISABILITIES on
 or after July first, nineteen hundred seventy-eight. The comptroller may
 deduct  from  any  state  funds which become due to a school district an
 amount equal to the reimbursement required to be  made  by  such  school
 district  in  accordance  with this paragraph and the amount so deducted
 shall not be included in the approved operating expense of such district
 for the purpose of computing the approved operating expenses pursuant to
 paragraph t of subdivision one of section thirty-six hundred two of this
 chapter.
   (1) Children who reside in an  intermediate  care  facility  for  [the
 mentally retarded]  INDIVIDUALS WITH INTELLECTUAL OR DEVELOPMENTAL DISA-
 BILITIES, other than a state operated school for [the mentally retarded]
 INDIVIDUALS  WITH INTELLECTUAL OR DEVELOPMENTAL DISABILITIES, as defined
 in regulations of the office for people with developmental disabilities,
 shall be admitted to the public schools, except as otherwise provided in
 subparagraph fourteen of this paragraph.    The  trustees  or  board  of
 education of the school district in which such facility is located shall
 receive  such  children  in  the  school  or schools of the district for
 instruction and for the provision of necessary related  services  for  a
 compensation  to  be fixed by the trustees or board of education, unless
 such trustees or board of education shall establish to the  satisfaction
 of  the  commissioner [of education] that there are valid and sufficient
 reasons for refusal to receive such children.  Evaluation of the  educa-
 tional  needs  of such children and placement in appropriate educational
 programs shall be made in accordance with article  eighty-nine  of  this
 chapter.
   (8) A board of education of a school district which receives notifica-
 tion  that  a child has been placed in an intermediate care facility for
 [the mentally retarded] INDIVIDUALS WITH INTELLECTUAL  OR  DEVELOPMENTAL
 DISABILITIES  may deny financial responsibility for any child by written
 notice within twenty days of such notification to  the  school  district
 furnishing instruction and the intermediate care facility.
   (13)  The  school  district providing educational services to children
 placed pursuant to this paragraph shall provide a report on  the  status
 of each such child with a handicapping condition annually to the commit-
 tee  on  special  education  of  the  school district in which the child
 resided at the time of admission to the intermediate care  facility  for
 [the  mentally  retarded] INDIVIDUALS WITH INTELLECTUAL OR DEVELOPMENTAL
 DISABILITIES. Such report shall also be sent to the parent  or  guardian
 of the child and the office for people with developmental disabilities.
   §  17.  Subclause (iii) of clause (c) of subparagraph 4 of paragraph b
 of subdivision 1 of section 4402 of the education  law,  as  amended  by
 chapter 378 of the laws of 2007, is amended to read as follows:
   (iii)  where  neither  such  agency exists in the locality, either the
 area developmental  disabilities  services  office,  where  the  primary
 reason the child is at risk of placement relates to [mental retardation]
 AN  INTELLECTUAL  OR  A  DEVELOPMENTAL  DISABILITY,  or the local mental
 health agency, where the primary reason the child is at risk  of  place-
 ment relates to any other mental disability.
   §  18.  Subclause (iii) of clause (c) of subparagraph 4 of paragraph b
 of subdivision 1 of section 4402 of the education  law,  as  amended  by
 chapter 600 of the laws of 1994, is amended to read as follows:
   (iii)  where  neither  such  agency exists in the locality, either the
 area developmental  disabilities  services  office,  where  the  primary

 S. 6789                             9

 reason  the child is at risk of placement relates to [mental retardation
 or a] AN INTELLECTUAL OR A DEVELOPMENTAL DISABILITY, or the local mental
 health agency, where the primary reason the child is at risk  of  place-
 ment relates to any other mental disability.
   §  19.  Subdivision 4 of section 4403 of the education law, as amended
 by chapter 53 of the laws of 1986, is amended to read as follows:
   4. To periodically inspect, report on the adequacy of and make  recom-
 mendations concerning instructional programs or special services for all
 children  with handicapping conditions who reside in or attend any state
 operated or state financed social service facilities, youth  facilities,
 health  facilities, mental health, [mental retardation] INTELLECTUAL and
 developmental disabilities facilities or state correctional facilities.
   § 20. Section 4809 of the education law, as amended by chapter 550  of
 the laws of 1978, is amended to read as follows:
   § 4809. Transfer  of  pupils.    The board of managers shall have full
 power to transfer to other institutions any child committed by  a  court
 found to be incorrigible, not amenable to proper discipline and training
 of  the  school,  or  [mentally retarded] LIVING WITH AN INTELLECTUAL OR
 DEVELOPMENTAL DISABILITY, in the manner and by  the  methods  prescribed
 and set forth in the penal law.
   §  21.  Paragraph  a of subdivision 3 of section 6507 of the education
 law, as amended by chapter 672 of the laws of 2019, is amended  to  read
 as follows:
   a. Establish standards for preprofessional and professional education,
 experience and licensing examinations as required to implement the arti-
 cle for each profession. Notwithstanding any other provision of law, the
 commissioner shall establish standards requiring that all persons apply-
 ing,  on or after January first, nineteen hundred ninety-one, initially,
 or for the renewal of, a license, registration or limited permit to be a
 physician, chiropractor, dentist, registered nurse, podiatrist,  optome-
 trist,   psychiatrist,  psychologist,  licensed  master  social  worker,
 licensed clinical  social  worker,  licensed  creative  arts  therapist,
 licensed  marriage  and family therapist, licensed mental health counse-
 lor,  licensed  psychoanalyst,  dental  hygienist,   licensed   behavior
 analyst,  or  certified behavior analyst assistant shall, in addition to
 all the other licensure,  certification  or  permit  requirements,  have
 completed  two hours of coursework or training regarding the identifica-
 tion and reporting of child abuse and maltreatment.  The  coursework  or
 training  shall  be  obtained  from an institution or provider which has
 been approved by the department to provide such coursework or  training.
 The coursework or training shall include information regarding the phys-
 ical  and  behavioral indicators of child abuse and maltreatment and the
 statutory reporting requirements set out in sections four hundred  thir-
 teen  through  four hundred twenty of the social services law, including
 but not limited to, when and how a  report  must  be  made,  what  other
 actions  the  reporter  is  mandated  or  authorized  to take, the legal
 protections afforded reporters, and  the  consequences  for  failing  to
 report. Such coursework or training may also include information regard-
 ing  the  physical and behavioral indicators of the abuse of individuals
 with [mental retardation and other] INTELLECTUAL OR developmental  disa-
 bilities  and  voluntary  reporting of abused or neglected adults to the
 office for people with developmental disabilities  or  the  local  adult
 protective  services  unit.  Each applicant shall provide the department
 with documentation showing that he or she  has  completed  the  required
 training. The department shall provide an exemption from the child abuse
 and  maltreatment  training  requirements  to any applicant who requests

 S. 6789                            10
 
 such an exemption and who shows, to the department's satisfaction,  that
 there  would be no need because of the nature of his or her practice for
 him or her to complete such training;
   §  22.  Subparagraph  (i) of paragraph (a) of subdivision 1 of section
 509 of the executive law, as added by chapter 659 of the  laws  of  1977
 and renumbered by chapter 465 of the laws of 1992, is amended to read as
 follows:
   (i) that such child is [mentally ill or mentally retarded] LIVING WITH
 MENTAL  ILLNESS  OR AN INTELLECTUAL OR DEVELOPMENTAL DISABILITY and will
 substantially benefit from care and treatment in such a state school  or
 hospital; and
   §  23.  Subdivision  (b)  of  section  115 of the family court act, as
 amended by chapter 281 of the laws  of  1980,  is  amended  to  read  as
 follows:
   (b)  The  family  court has such other jurisdiction as is set forth in
 this act, including jurisdiction over habeas corpus proceedings and over
 applications for support, maintenance, a distribution of marital proper-
 ty and custody in matrimonial actions when referred to the family  court
 by the supreme court, conciliation proceedings, and proceedings concern-
 ing  physically  handicapped and [mentally defective or retarded] INTEL-
 LECTUALLY OR DEVELOPMENTALLY DISABLED children.
   § 24. Item (i) of subparagraph (A) of paragraph 4 of subsection (a) of
 section 3216 of the insurance law, as amended by chapter 219 of the laws
 of 2011, is amended to read as follows:
   (i) Any unmarried dependent child, regardless of age, who is incapable
 of self-sustaining employment by reason of mental illness,  INTELLECTUAL
 OR  developmental  disability[, or mental retardation] as defined in the
 mental hygiene law, or physical handicap and  who  became  so  incapable
 prior  to the age at which dependent coverage would otherwise terminate,
 shall be included in coverage subject  to  any  pre-existing  conditions
 limitation applicable to other dependents; or
   §  25.  Subparagraph  (A) of paragraph 4 and subparagraph (B) of para-
 graph 5 of subsection (c) of section 3216 of the insurance law, subpara-
 graph (A) of paragraph 4 as amended by chapter 93 of the laws  of  1989,
 and subparagraph (B) of paragraph 5 as amended by section 46-b of part D
 of chapter 56 of the laws of 2013, are amended to read as follows:
   (A) Coverage of an unmarried dependent child who is incapable of self-
 sustaining  employment  by  reason  of  mental  illness, INTELLECTUAL OR
 developmental disability, [or mental retardation,]  as  defined  in  the
 mental  hygiene  law,  or  physical handicap and who became so incapable
 prior to attainment of the age at which dependent coverage would  other-
 wise  terminate  and who is chiefly dependent upon such policyholder for
 support and maintenance, shall not terminate while the policy remains in
 force and the dependent remains in such condition, if  the  policyholder
 has  within thirty-one days of such dependent's attainment of the limit-
 ing age submitted proof of  such  dependent's  incapacity  as  described
 herein.
   (B)  Written  notice  of  entitlement  to a conversion policy shall be
 given by the insurer to the policyholder at least fifteen and  not  more
 than  sixty days prior to the termination of coverage due to the initial
 limiting age of the covered dependent.  Such  notice  shall  include  an
 explanation of the rights of the dependent with respect to the dependent
 being  enrolled  in  an accredited institution of learning or his OR HER
 incapacity for self-sustaining employment by reason of  mental  illness,
 INTELLECTUAL  OR  developmental  disability  [or  mental retardation] as
 defined in the mental hygiene law or physical handicap.

 S. 6789                            11
 
   § 26. Item (ii) of subparagraph (A) of paragraph 1 of  subsection  (f)
 of  section  4235 of the insurance law, as amended by chapter 219 of the
 laws of 2011, is amended to read as follows:
   (ii) a policy under which coverage terminates at a specified age shall
 not  so terminate with respect to an unmarried child who is incapable of
 self-sustaining employment by reason of mental illness, INTELLECTUAL  OR
 developmental disability, [mental retardation,] as defined in the mental
 hygiene  law,  or physical handicap and who became so incapable prior to
 attainment of the age at which coverage would  otherwise  terminate  and
 who  is  chiefly  dependent upon such employee or member for support and
 maintenance, while the insurance of the employee or  member  remains  in
 force  and  the child remains in such condition, if the insured employee
 or member has within thirty-one days of such child's attainment  of  the
 termination  age submitted proof of such child's incapacity as described
 herein.
   § 27. Item (ii) of subparagraph (A) of paragraph 1 and paragraph 3  of
 subsection (d) of section 4304 of the insurance law, as amended by chap-
 ter 219 of the laws of 2011, are amended to read as follows:
   (ii)  The  coverage  of  any  such "family contract" shall include any
 other unmarried child, regardless of age, who is incapable of  self-sus-
 taining employment by reason of mental illness, INTELLECTUAL OR develop-
 mental  disability,  [mental  retardation,]  as  defined  in  the mental
 hygiene law, or physical handicap and who became so incapable  prior  to
 attainment of the age at which coverage would otherwise terminate.
   (3) Coverage of an unmarried dependent child who is incapable of self-
 sustaining  employment  by  reason  of  mental  illness, INTELLECTUAL OR
 developmental disability [or mental  retardation],  as  defined  in  the
 mental  hygiene  law,  or  physical handicap and who became so incapable
 prior to attainment of the age at which coverage would otherwise  termi-
 nate  and  who is chiefly dependent upon the contract holder for support
 and maintenance, shall not terminate while the contract remains in force
 and the child remains in such condition,  if  the  contract  holder  has
 within  thirty-one  days  of such child's attainment of the limiting age
 submitted proof of such child's incapacity as described herein.
   § 28. Item (ii) of subparagraph (A) of paragraph 1 of  subsection  (c)
 of  section  4305 of the insurance law, as amended by chapter 219 of the
 laws of 2011, is amended to read as follows:
   (ii) a contract under which coverage terminates  at  a  specified  age
 shall,  with respect to an unmarried child who is incapable of self-sus-
 taining employment by reason of mental illness, INTELLECTUAL OR develop-
 mental disability,  [mental  retardation,]  as  defined  in  the  mental
 hygiene  law,  or physical handicap and who became so incapable prior to
 attainment of the age at which coverage would  otherwise  terminate  and
 who  is  chiefly dependent upon such member for support and maintenance,
 not so terminate while the contract  remains  in  force  and  the  child
 remains  in  such condition, if the member has within thirty-one days of
 such child's attainment of the termination age submitted proof  of  such
 child's incapacity as described herein.
   § 29. Paragraph a of subdivision 1 of section 35 of the judiciary law,
 as  amended  by  chapter  817 of the laws of 1986, is amended to read as
 follows:
   a. When a court orders a hearing in a proceeding upon a writ of habeas
 corpus to inquire into the cause of detention of a person in custody  in
 a  state  institution, or when it orders a hearing in a civil proceeding
 to commit or transfer a person to or retain him in a  state  institution
 when  such person is alleged to be mentally ill, mentally defective or a

 S. 6789                            12
 
 narcotic addict, or when it orders a hearing for the commitment  of  the
 guardianship and custody of a child to an authorized agency by reason of
 the mental illness or [mental retardation] INTELLECTUAL OR DEVELOPMENTAL
 DISABILITY of a parent, or when it orders a hearing to determine whether
 consent  to the adoption of a child shall be required of a parent who is
 alleged to be mentally ill  or  [mentally  retarded]  INTELLECTUALLY  OR
 DEVELOPMENTALLY  DISABLED,  or when it orders a hearing to determine the
 best interests of a child when the parent of the child revokes a consent
 to the adoption of such child and such revocation is opposed or  in  any
 adoption or custody proceeding if it determines that assignment of coun-
 sel  in  such  cases is mandated by the constitution of this state or of
 the United States, the court may assign counsel to represent such person
 if it is satisfied that he is financially unable to obtain counsel. Upon
 an appeal taken from an order entered in any such proceeding, the appel-
 late court may assign counsel to represent such person upon  the  appeal
 if it is satisfied that he is financially unable to obtain counsel.
   §  30.  The  article  heading  of  article 15 of title C of the mental
 hygiene law, as renumbered by chapter  978  of  the  laws  of  1977,  is
 amended to read as follows:
             ADMISSION OF [THE MENTALLY RETARDED] PEOPLE WITH
           INTELLECTUAL OR DEVELOPMENTAL DISABILITIES TO SCHOOLS
   §  31.  Paragraphs  1 and 2 of subdivision (a) of section 41.17 of the
 mental hygiene law, as amended by chapter 471 of the laws of  1980,  are
 amended to read as follows:
   1.  develop standards for admissions to all facilities for the care of
 the mentally ill, [mentally retarded  and]  INTELLECTUALLY  OR  develop-
 mentally  disabled,  and those suffering from the disease of alcoholism,
 alcohol abuse, substance abuse or substance dependence  consistent  with
 the  requirements  of  articles  nine[,] AND fifteen [and twenty-one] of
 this chapter taking into account characteristics of clients and  provid-
 ers;
   2.  develop  standards for discharges from all facilities for the care
 of the mentally ill, [mentally retarded and] INTELLECTUALLY OR  develop-
 mentally  disabled,  and those suffering from the disease of alcoholism,
 alcohol abuse, substance  abuse  or  substance  dependence  taking  into
 account  the  availability  and  adequacy  of  community residential and
 treatment services and the rights of the patient;
   § 32. Paragraph (i) of subdivision (b) of section 41.18 of the  mental
 hygiene  law,  as amended by chapter 376 of the laws of 1991, is amended
 to read as follows:
   (i) Local governments shall be granted state aid, in  accordance  with
 the  provisions  of  this  subdivision, for approved net operating costs
 pursuant to an approved local services plan at the rate of fifty percent
 of the amount incurred during  the  local  fiscal  year  by  such  local
 governments  and  by  voluntary  agencies pursuant to contract with such
 local governments; provided, however, that a local government  having  a
 population  of less than two hundred thousand shall be granted state aid
 at the rate of seventy-five percent for the first one  hundred  thousand
 dollars of its approved net operating costs. Notwithstanding the forego-
 ing, local governments shall be granted state aid of one hundred percent
 of  the  net  operating  costs expended by such local governments and by
 voluntary agencies pursuant to contract with such local governments  for
 services  to  [mentally  retarded  or  developmentally disabled persons]
 PEOPLE WITH INTELLECTUAL OR DEVELOPMENTAL DISABILITIES who were patients
 in a state facility for a  continuous  period  of  five  or  more  years
 following  the  first  day  of  January,  nineteen  hundred  sixty-nine,

 S. 6789                            13

 provided that such services are rendered in accordance with an  approved
 local  services plan. Such one hundred percent state aid for services to
 such persons shall be also provided to a voluntary agency pursuant to  a
 direct  contract  between  such  agency  and an office of the department
 whenever such services provided pursuant to  such  direct  contract  are
 rendered  in accordance with an approved local services plan for servic-
 ing such clients. For purposes of determining whether a person has  been
 a  patient  in  such a facility for a continuous period of five years or
 more, if a person who has been discharged or released from such a facil-
 ity is thereafter returned to such a facility within ninety days of  the
 discharge  or  release,  the  period  of  time between such discharge or
 release and such return shall not constitute  an  interruption  of,  and
 shall be counted as part of, the continuous period.
   §  33.  The  article  heading  of  article 75 of title E of the mental
 hygiene law is amended to read as follows:
               COMMUNITY MENTAL HEALTH SERVICES AND [MENTAL
                  RETARDATION] DEVELOPMENTAL DISABILITIES
                            SERVICES COMPANIES
   § 34.  Subdivisions 1, 2 and 4 of section 75.05 of the mental  hygiene
 law,  subdivision  4  as amended by chapter 570 of the laws of 1982, are
 amended to read as follows:
   1. "Company", "community mental health services company" or "community
 [mental retardation] DEVELOPMENTAL  DISABILITIES  services  company".  A
 company,  duly  incorporated  pursuant to the provisions of the not-for-
 profit corporation law and this article, for the  purpose  of  providing
 for  the  care,  treatment,  training,  education,  and residence of the
 mentally disabled, and such facilities as may be incidental or appurten-
 ant thereto.
   2. "Project", "community mental health services project" or "community
 [mental retardation] DEVELOPMENTAL  DISABILITIES  services  project".  A
 specific  work or improvement, including lands, buildings, improvements,
 fixtures, and articles  of  personal  property,  constructed,  acquired,
 reconstructed,  rehabilitated,  managed, owned, or operated by a company
 pursuant to this article, to provide  community  residential  facilities
 for  operation  as  hostels  for  the mentally disabled or for the care,
 treatment, training,  education  of  the  mentally  disabled,  or  both,
 including such facilities as may be incidental or appurtenant thereto.
   4. "Project  cost", "community mental health services project cost" or
 "community  [mental  retardation]  DEVELOPMENTAL  DISABILITIES  services
 project  cost".  The  sum  total  of  all costs incurred by a company as
 approved by the commissioner as reasonable and  necessary  for  carrying
 out all works and undertakings and providing all necessary equipment for
 the  development  of a project less any portion of any state, federal or
 municipal assistance grant, as the  commissioner  shall,  prior  to  the
 making  of  a mortgage loan by the New York state housing finance agency
 to a company, determine to be available to reimburse the company for the
 payment of such project costs prior to  the  initial  occupancy  of  the
 project,  and  all costs relating to the refinancing of existing indebt-
 edness associated with the development of the project which  constitutes
 a lien or other encumbrance upon the real property or assets of a compa-
 ny  to  be  mortgaged  or  otherwise  pledged to the agency. These shall
 include but are not necessarily limited to the carrying  charges  during
 construction up to and including the occupancy date, working capital not
 exceeding  three per centum of the estimated total cost or three percen-
 tum of the actual total final cost, whichever is larger, the cost of all
 necessary studies, surveys,  plans  and  specifications,  architectural,

 S. 6789                            14
 
 engineering,  legal,  or other special services, the cost of acquisition
 of land and any improvements thereon, site preparation and  development,
 construction, reconstruction, rehabilitation, improvement and equipment,
 including   fixtures,  equipment,  and  articles  of  personal  property
 required for the operation of care,  treatment,  training,  educational,
 and residential facilities, the reasonable cost of financing incurred by
 the  company  in the course of the development of the project, up to and
 including the occupancy date, the fees imposed by the  commissioner  and
 by  the  New  York state housing finance agency; other fees charged, and
 necessary expenses incurred in connection with the initial occupancy  of
 the  project,  and  the cost of such other items as the commissioner may
 determine to be reasonable  and  necessary  for  the  development  of  a
 project,  less  any and all rents and other net revenues from the opera-
 tion of the real property, improvements  or  personal  property  on  the
 project  site, or any part thereof, by the company on and after the date
 on which the contract between the company and the New York state housing
 finance agency was entered into and prior to the occupancy date.
   § 35. Subdivision 1 of section 2581  of  the  public  health  law,  as
 amended  by  chapter  231  of  the  laws  of 2010, is amended to read as
 follows:
   1. "Children with physical disabilities" means any persons under twen-
 ty-one years of age who are disabled by reason of a defect or  disabili-
 ty,  whether  congenital or acquired by accident, injury, or disease, or
 who are suffering from long-term disease, including, but without  limit-
 ing  the  generality  of  the  foregoing,  chronic granulomatous, cystic
 fibrosis, epidermolysis bullosa, muscular dystrophy, nephrosis, rheumat-
 ic fever and rheumatic heart disease, blood dyscrasies, cancer, lymphat-
 ic diseases, including, but not limited to: insufficiency  of  lymphatic
 circulatory  function  (to include all forms of lymphedema, both primary
 and secondary); lipedema; complex vascular  diseases  of  the  lymphatic
 vasculature,   including  lymphangiomatosis,  lymphangioleio-myomatosis,
 lymphangiectasias, lymphangiomas,  cystic  hygromas,  Gorham's  disease,
 lymphangiosarcoma,  and  complex  vascular/lymphatic  malformations  and
 syndromes, brain injured, and chronic asthma, or  from  any  disease  or
 condition  likely to result in a disability in the absence of treatment,
 provided, however, no child shall be deprived of  a  service  under  the
 provisions  of  this  chapter  solely  because  of the degree of [mental
 retardation] INTELLECTUAL OR DEVELOPMENTAL DISABILITY.
   § 36. The opening paragraph of subdivision 3 of section 2994-b of  the
 public  health  law,  as  amended by chapter 708 of the laws of 2019, is
 amended to read as follows:
   Prior to seeking or relying upon a health care decision by a surrogate
 for a patient under this article,  if  the  attending  practitioner  has
 reason  to  believe that the patient has a history of receiving services
 for [mental retardation] AN INTELLECTUAL or a developmental  disability;
 it reasonably appears to the attending practitioner that the patient has
 [mental  retardation]  AN INTELLECTUAL or a developmental disability; or
 the practitioner has reason to believe that the patient has been  trans-
 ferred from a mental hygiene facility operated or licensed by the office
 of  mental  health, then such physician, nurse practitioner or physician
 assistant shall make reasonable efforts to determine whether  paragraphs
 (a), (b) or (c) of this subdivision are applicable:
   §  37.  The  section  heading  and  subdivision 1 of section 34 of the
 public lands law, as amended by chapter 703 of the  laws  of  1994,  are
 amended to read as follows:

 S. 6789                            15
 
   Transfer  of  unappropriated  state  lands  for mental health, [mental
 retardation] DEVELOPMENTAL DISABILITIES, park,  recreation,  playground,
 reforestation,  street  or  highway  purposes.  1.  Such commissioner of
 general services may, from time to time, transfer and convey to a  city,
 incorporated  village, town or county, in consideration of one dollar to
 be paid to the state of New York, and on such terms  and  conditions  as
 such  commissioner may impose, a part or all of any parcel or parcels of
 unappropriated state  lands  upon  certification  that  such  parcel  or
 parcels  are useful for local mental health facilities, [mental retarda-
 tion] DEVELOPMENTAL DISABILITIES  facilities,  park,  recreation,  play-
 ground, reforestation, street or highway purposes, and that they will be
 properly  improved  and  maintained for one or more of such purposes and
 provided that this disposition of such parcel or parcels is  not  other-
 wise  prohibited.  Certification  shall be evidenced by a formal request
 from the board of estimate, common council, village board, town board or
 county board of supervisors, setting  forth  in  detail  the  parcel  or
 parcels  to  be  released, transferred and conveyed and the availability
 and usefulness of such parcel  or  parcels  for  one  or  more  of  such
 purposes.  In  the  city  of  New  York  however, certification shall be
 evidenced by a formal request from the mayor. In the  event  that  lands
 transferred  under  the  provisions  of  this  section  are not properly
 improved and maintained for one or more of the purposes contemplated  by
 this  section  by  the  city, village, town or county to which they were
 transferred, the title thereto shall revert to the people of  the  state
 of  New  York,  and  the attorney-general may institute an action in the
 supreme court for a judgment declaring a revesting of such title in  the
 state.  Such  commissioner  may  also  transfer any unappropriated state
 lands to the office of parks, recreation and  historic  preservation  or
 the  department  of  environmental conservation, upon the application of
 the commissioner thereof indicating that such unappropriated state lands
 are required for state park purposes within the area of jurisdiction  of
 such office or department.
   §  38. Subdivision 8 of section 41 of the private housing finance law,
 as amended by chapter 264 of the laws of 1970, is  amended  to  read  as
 follows:
   8.  Prompt  provision  of new and improved community mental health and
 [mental retardation] DEVELOPMENTAL DISABILITIES facilities  is  required
 for the care and treatment of the increasing number of persons afflicted
 with  mental  illness,  mental  deficiencies,  epilepsy  and behavior or
 emotional disorders; that such facilities should be located close to the
 people they serve in order to speed rehabilitation and  restoration  and
 to  provide  for  out-patient and in-patient care, including after care,
 diagnostic and rehabilitative services  and  residential  accommodations
 for  operation as hostels; that it is the policy of the state to promote
 the provision of such community mental health and  [mental  retardation]
 DEVELOPMENTAL DISABILITIES facilities; that there is a need for non-pro-
 fit  corporations  to  construct  low  cost  community mental health and
 [mental retardation] DEVELOPMENTAL DISABILITIES facilities. In order  to
 encourage  the  investment  of  private capital in such community mental
 health and [mental retardation] DEVELOPMENTAL  DISABILITIES  facilities,
 and to assure the expeditious completion of such community mental health
 and  [mental retardation] DEVELOPMENTAL DISABILITIES facilities, the New
 York state housing finance agency should be empowered, through the issu-
 ance of its bonds, notes or other obligations to the  private  investing
 public,  to obtain funds necessary to make mortgage loans, at low inter-
 est rates, to non-profit corporations for the construction, acquisition,

 S. 6789                            16
 
 reconstruction, rehabilitation or improvement of such mental health  and
 [mental retardation] DEVELOPMENTAL DISABILITIES facilities.
   § 39. Subdivisions 6-d, 14 and 14-a of section 42 of the private hous-
 ing  finance law, subdivision 6-d as added by chapter 380 of the laws of
 1972, subdivision 14 as amended by chapter 281 of the laws of  1970  and
 subdivision  14-a  as  added  by  chapter  570  of the laws of 1982, are
 amended to read as follows:
   6-d. "Mortgage loan" shall also mean a loan made by the  agency  to  a
 company  incorporated  pursuant to the provisions of [article eight-B of
 the mental hygiene law and] the not-for-profit  corporation  law  in  an
 amount  not to exceed the total community mental health services project
 cost  or  community  [mental  retardation]  DEVELOPMENTAL   DISABILITIES
 services  project cost, and secured by a first mortgage lien on the real
 property of which the community mental health services project or commu-
 nity [mental retardation] DEVELOPMENTAL  DISABILITIES  services  project
 consists  and  the  personal  property attached to or used in connection
 with  the  construction,  acquisition,  reconstruction,  rehabilitation,
 improvement or operation of the community mental health services project
 or  community  [mental  retardation] DEVELOPMENTAL DISABILITIES services
 project.  "Community mental health services company," "community [mental
 retardation] DEVELOPMENTAL DISABILITIES  services  company,"  "community
 mental  health  services  project cost," "community [mental retardation]
 DEVELOPMENTAL DISABILITIES services  project  cost,"  "community  mental
 health  services  project"  and "community [mental retardation] DEVELOP-
 MENTAL DISABILITIES services project" shall mean community mental health
 services company, community [mental retardation] DEVELOPMENTAL DISABILI-
 TIES services company, community mental health  services  project  cost,
 community   [mental  retardation]  DEVELOPMENTAL  DISABILITIES  services
 project cost, community mental health  services  project  and  community
 [mental   retardation]   DEVELOPMENTAL  DISABILITIES  services  project,
 respectively[, as defined in article eight-B of the mental hygiene law].
   14. "Community mental health services and [mental retardation]  DEVEL-
 OPMENTAL  DISABILITIES  services  project  bonds"  and "community mental
 health services  and  [mental  retardation]  DEVELOPMENTAL  DISABILITIES
 services project notes" shall mean bonds and notes, respectively, issued
 by  the  agency  for  the purposes of making mortgage loans to companies
 incorporated pursuant to the not-for-profit corporation law [and article
 eight-B of the mental hygiene law], paying interest on  such  bonds  and
 notes,  establishing reserves to secure such bonds and notes, and paying
 of all other expenditures of the agency incident  to  and  necessary  or
 convenient for the making of such mortgage loans.
   14-a.  "Community  mental  health  services  and  [mental retardation]
 DEVELOPMENTAL DISABILITIES services project revenue bonds" and "communi-
 ty mental health services and [mental retardation]  DEVELOPMENTAL  DISA-
 BILITIES  services  project  revenue  notes" shall mean bonds and notes,
 respectively, issued by the agency for the purpose  of  making  mortgage
 loans  to  companies  incorporated pursuant to the not-for-profit corpo-
 ration law and article seventy-five OF TITLE E  of  the  mental  hygiene
 law,  paying  interest on such bonds and notes, establishing reserves to
 secure such bonds and notes, and paying of all other expenditures of the
 agency incident to and necessary or convenient for the  making  of  such
 mortgage loans.
   §  40.  Paragraphs  (a) and (d) of subdivision 15 of section 44 of the
 private housing finance law, as amended by chapter 195 of  the  laws  of
 1973, are amended to read as follows:

 S. 6789                            17
 
   (a)  Subject to the approval of the commissioner and to the provisions
 of any contract with noteholders or bondholders, except with any holders
 of hospital and nursing home project bonds or notes or youth  facilities
 project  bonds or notes, or community mental health services and [mental
 retardation] DEVELOPMENTAL DISABILITIES services project bonds or notes,
 whenever  it  deems  it necessary or desirable in the fulfillment of the
 purposes of this article, to consent to the modification,  with  respect
 to  rate of interest, time of payment of any installment of principal or
 interest, security, or any other term, of any mortgage,  mortgage  loan,
 mortgage loan commitment, contract or agreement of any kind to which the
 agency  is a party, except such mortgages, mortgage loans, mortgage loan
 commitments, contracts or agreements as may have been entered into  with
 hospital corporations which are eligible borrowers as defined in article
 twenty-eight-B  of the public health law, nursing home companies or non-
 profit corporations which are eligible borrowers  as  defined  in  title
 five-A  of  article six of the social services law or companies incorpo-
 rated pursuant to the not-for-profit corporation law and article  seven-
 ty-five of the mental hygiene law;
   (d) Subject to the provisions of any contract with holders of communi-
 ty  mental  health services and [mental retardation] DEVELOPMENTAL DISA-
 BILITIES services project bonds or notes, whenever it deems it necessary
 or desirable in the fulfillment of the  purposes  of  this  article,  to
 consent  to  the modification, with respect to rate of interest, time of
 payment of any installment of principal or interest,  security,  or  any
 other  term  of  any  mortgage, mortgage loan, mortgage loan commitment,
 contract or agreement of any kind  between  the  agency  and  a  company
 incorporated  pursuant to the not-for-profit corporation law and article
 seventy-five of the mental hygiene law.
   § 41. Paragraphs (a), (b), (c) and (d) of subdivision  1,  subdivision
 2,  paragraphs  (a),  (b), (c) and (d) of subdivision 12, subdivision 13
 and paragraphs (a), (b) and (c) of subdivision 16 of section 47  of  the
 private  housing finance law, paragraphs (a), (b) and (d) of subdivision
 1 and subdivision 2 as amended by chapter 215 of the laws of 1990, para-
 graph (c) of subdivision 1 as amended by chapter  127  of  the  laws  of
 2019, paragraphs (a) and (d) of subdivision 12 as amended by chapter 365
 of  the laws of 1973 and subdivision 13 as amended by chapter 195 of the
 laws of 1973, paragraphs (b) and (c) of subdivision  12  as  amended  by
 chapter 38 of the laws of 1976 and paragraphs (a), (b) and (c) of subdi-
 vision  16  as  added by chapter 570 of the laws of 1982, are amended to
 read as follows:
   (a) The agency shall create  and  establish  a  special  fund  (herein
 referred  to  as  capital reserve fund), and shall pay into such capital
 reserve fund (1) any monies appropriated and made available by the state
 for the purposes of such fund, (2) any proceeds  of  sale  of  notes  or
 bonds other than state university construction notes or state university
 construction  bonds,  equity  notes  or equity bonds, non-profit project
 notes or non-profit project bonds, hospital  and  nursing  home  project
 notes  or  hospital and nursing home project bonds, urban rental project
 notes or urban rental project bonds, health facilities notes  or  health
 facilities  bonds,  youth  facilities  project notes or youth facilities
 project bonds, community mental health services and [mental retardation]
 DEVELOPMENTAL DISABILITIES services project notes  or  community  mental
 health  services  and  [mental  retardation]  DEVELOPMENTAL DISABILITIES
 services project bonds, community senior citizens services project notes
 or community senior citizens  services  project  bonds,  mental  hygiene
 improvement  notes or mental hygiene improvement bonds and revenue hous-

 S. 6789                            18
 
 ing bonds, and bonds and notes for the housing  program  to  the  extent
 provided in the resolution of the agency authorizing the issuance there-
 of,  and  (3) any other moneys which may be made available to the agency
 for  the  purpose  of  such  fund  from any other source or sources. All
 moneys held in the capital reserve fund, except as hereinafter provided,
 shall be used solely for the payment of the principal of  bonds  of  the
 agency  other  than  state  university construction bonds, equity bonds,
 non-profit project bonds, hospital and nursing home project bonds, urban
 rental project bonds, health facilities bonds, youth facilities  project
 bonds,  community mental health services and [mental retardation] DEVEL-
 OPMENTAL DISABILITIES services project bonds, community senior  citizens
 services  project  bonds,  mental  hygiene improvement bonds and revenue
 housing bonds, and bonds and notes for the housing program as  the  same
 mature,  required  payments  to any sinking fund established in a resol-
 ution of the agency for the  amortization  of  term  bonds  (hereinafter
 referred  to  as "sinking fund payments"), the purchase or redemption of
 bonds of the agency other  than  state  university  construction  bonds,
 equity  bonds,  non-profit  project  bonds,  hospital  and  nursing home
 project bonds, urban rental  project  bonds,  health  facilities  bonds,
 youth  facilities  project  bonds,  community mental health services and
 [mental retardation] DEVELOPMENTAL DISABILITIES services project  bonds,
 community   senior  citizens  services  project  bonds,  mental  hygiene
 improvement bonds and revenue housing bonds, and bonds and notes for the
 housing program the payment of interest on such bonds of the  agency  or
 the  payment  of  any  redemption  premium required to be paid when such
 bonds are redeemed prior to maturity; provided, however, that monies  in
 such fund shall not be withdrawn therefrom at any time in such amount as
 would  reduce the amount of such fund to less than the maximum amount of
 principal and interest  maturing  and  becoming  due  and  sinking  fund
 payments  required  to  be  made  in any succeeding calendar year on all
 bonds of  the  agency  then  outstanding  other  than  state  university
 construction bonds, equity bonds, non-profit project bonds, hospital and
 nursing  home  project bonds, urban rental project bonds, health facili-
 ties bonds, youth facilities  project  bonds,  community  mental  health
 services  and  [mental  retardation] DEVELOPMENTAL DISABILITIES services
 project bonds, community senior citizens services project bonds,  mental
 hygiene  improvement bonds and revenue housing bonds and bonds and notes
 for the housing program, except for the purpose of paying principal  of,
 interest  and  sinking  fund  payments becoming due on such bonds of the
 agency maturing and becoming due and for  the  payment  of  which  other
 moneys  of the agency are not available. For the purposes of this subdi-
 vision [one], in computing the maximum amount of principal maturing at a
 single future date (herein called "term bonds") in any succeeding calen-
 dar year, the principal amount of any such term bonds which are  subject
 to  mandatory  redemption  prior  to  such  future  date by sinking fund
 payments shall not be included in the computation determining the  maxi-
 mum  amount  of  principal  maturing  in said future year. Any income or
 interest earned by, or increment to, the capital reserve fund due to the
 investment thereof may be transferred  by  the  agency  to  the  general
 reserve  fund  or  other  fund  of  the agency to the extent it does not
 reduce the amount of the capital reserve fund below the  maximum  amount
 of  principal  and  interest  maturing and becoming due and sinking fund
 payments required to be made in any succeeding calendar year on all such
 bonds of  the  agency  then  outstanding  other  than  state  university
 construction bonds, equity bonds, non-profit project bonds, hospital and
 nursing  home  project bonds, urban rental project bonds, health facili-

 S. 6789                            19
 
 ties bonds, youth facilities  project  bonds,  community  mental  health
 services  and  [mental  retardation] DEVELOPMENTAL DISABILITIES services
 project bonds, community senior citizens services project bonds,  mental
 hygiene  improvement bonds and revenue housing bonds and bonds and notes
 for the housing program.
   (b) The agency shall not  issue  bonds  other  than  state  university
 construction bonds, equity bonds, non-profit project bonds, hospital and
 nursing  home  project bonds, urban rental project bonds, health facili-
 ties bonds, youth facilities  project  bonds,  community  mental  health
 services  and  [mental  retardation] DEVELOPMENTAL DISABILITIES services
 project bonds, community senior citizens services project bonds,  mental
 hygiene  improvement bonds and revenue housing bonds and bonds and notes
 for the housing program at any time secured by the capital reserve  fund
 if  the  maximum  amount of principal and interest maturing and becoming
 due and sinking fund payments required to be made in a succeeding calen-
 dar year on such bonds then to be issued and on all other bonds  of  the
 agency  then outstanding other than state university construction bonds,
 equity bonds,  non-profit  project  bonds,  hospital  and  nursing  home
 project  bonds,  urban  rental  project  bonds, health facilities bonds,
 youth facilities project bonds, community  mental  health  services  and
 [mental  retardation] DEVELOPMENTAL DISABILITIES services project bonds,
 community  senior  citizens  services  project  bonds,  mental   hygiene
 improvement  bonds and revenue housing bonds and bonds and notes for the
 housing program will exceed the amount of the capital  reserve  fund  at
 the  time of issuance unless the agency, at the time of issuance of such
 bonds, shall deposit in such fund from the proceeds of the bonds  so  to
 be  issued, or otherwise, an amount which, together with the amount then
 in such fund, will be not less than the maximum amount of principal  and
 interest maturing and becoming due and sinking fund payments required to
 be  made in any succeeding calendar year on such bonds then to be issued
 and on all other bonds of the agency then outstanding other  than  state
 university  construction  bonds, equity bonds, non-profit project bonds,
 hospital and nursing home project bonds,  urban  rental  project  bonds,
 health  facilities  bonds,  youth  facilities  project  bonds, community
 mental health services and [mental retardation] DEVELOPMENTAL  DISABILI-
 TIES  services project bonds, community senior citizens services project
 bonds, mental hygiene improvement bonds and revenue  housing  bonds  and
 bonds and notes for the housing program.
   (c)  The  agency  shall  not  issue  bonds  and notes other than state
 university construction bonds and state university  construction  notes,
 hospital  and  nursing  home project bonds and hospital and nursing home
 project notes, health facilities  bonds  and  health  facilities  notes,
 youth  facilities  project  bonds  and  youth  facilities project notes,
 community mental health services and [mental retardation]  DEVELOPMENTAL
 DISABILITIES services project bonds and community mental health services
 and  [mental  retardation]  DEVELOPMENTAL  DISABILITIES services project
 notes, community senior citizens services  project  notes  or  community
 senior  citizens  services  project bonds and mental hygiene improvement
 bonds and mental hygiene improvement notes and bonds and notes  for  the
 housing  program for any of its corporate purposes in an aggregate prin-
 cipal amount exceeding twenty-nine billion two  hundred  eighty  million
 dollars,  excluding  bonds  and notes issued to refund outstanding bonds
 and notes.
   (d) To assure the continued operation and solvency of the  agency  for
 the  carrying  out  of the public purposes of this article, provision is
 made in paragraph (a) of this subdivision for the  accumulation  in  the

 S. 6789                            20

 capital reserve fund of an amount equal to the maximum amount of princi-
 pal  and  interest  maturing  and becoming due and sinking fund payments
 required to be made in any succeeding calendar year on all bonds of  the
 agency  then outstanding other than state university construction bonds,
 equity bonds,  non-profit  project  bonds,  hospital  and  nursing  home
 project  bonds,  urban  rental  project  bonds, health facilities bonds,
 youth facilities project bonds, community  mental  health  services  and
 [mental  retardation] DEVELOPMENTAL DISABILITIES services project bonds,
 community  senior  citizens  services  project  bonds,  mental   hygiene
 improvement  bonds and revenue housing bonds and bonds and notes for the
 housing program. In order further to  assure  such  maintenance  of  the
 capital  reserve  fund,  there shall be annually apportioned and paid to
 the agency for deposit in the capital reserve fund such sum, if any,  as
 shall  be  certified  by  the chairman of the agency to the governor and
 director of the budget as necessary to restore the capital reserve  fund
 to  an  amount  equal  to  the  maximum amount of principal and interest
 maturing and becoming due and sinking fund payments required to be  made
 in  any  succeeding  calendar  year  on  the  bonds  of  the agency then
 outstanding other  than  state  university  construction  bonds,  equity
 bonds,  non-profit  project  bonds,  hospital  and  nursing home project
 bonds, urban rental project bonds, health facilities bonds, youth facil-
 ities project bonds, community mental health services and [mental retar-
 dation] DEVELOPMENTAL DISABILITIES  services  project  bonds,  community
 senior citizens services project bonds, mental hygiene improvement bonds
 and  revenue  housing bonds and bonds and notes for the housing program.
 The chairman of the agency shall annually, on or before December  first,
 make  and deliver to the governor and director of the budget his certif-
 icate stating the amount,  if  any,  required  to  restore  the  capital
 reserve  fund  to the amount aforesaid and the amount so stated, if any,
 shall be apportioned and paid to the  agency  during  the  then  current
 state  fiscal year. The principal amount of bonds secured by the capital
 reserve fund to which state funds are  apportionable  pursuant  to  this
 paragraph  shall  be  limited  to  the  total  amount of bonds and notes
 outstanding on the effective date of this act, plus the total amount  of
 bonds  and  notes  contracted  after  the  effective date of this act to
 finance projects in progress on the effective date of this act as deter-
 mined by the New York state public  authorities  control  board  created
 pursuant  to  section fifty of the public authorities law whose affirma-
 tive determination shall be conclusive as to all matters of law and fact
 solely for the purposes of the limitations contained in this  paragraph,
 but  in  no  event  shall the total amount of bonds so secured by such a
 capital reserve fund or funds exceed three hundred thirty-eight  million
 dollars,  excluding  bonds issued to refund such outstanding bonds until
 the date of redemption of such outstanding bonds. As  outstanding  bonds
 so  secured are paid, the amount so secured shall be reduced accordingly
 but the redemption of  such  outstanding  bonds  from  the  proceeds  of
 refunding bonds shall not reduce the amount so secured.
   2.  The  agency  shall  create  and  establish  a special fund (herein
 referred to as general reserve fund) and shall pay into  such  fund  all
 fees  and  charges  collected by the agency pursuant to paragraph (a) of
 subdivision eleven of section forty-four of this article, or  otherwise,
 other  than  fees and charges collected in connection with the making of
 mortgage loans (or commitments therefor) to mutual companies, non-profit
 companies, urban rental companies or community development corporations,
 and any monies which the agency shall transfer from the capital  reserve
 fund  pursuant  to the provisions of paragraph (a) of subdivision one of

 S. 6789                            21
 
 this section. Such monies and any other monies  paid  into  the  general
 reserve  fund may, in the discretion of the agency but subject to agree-
 ments with bondholders and noteholders, be used by the  agency  (a)  for
 the  repayment  of  advances  from  the  state  in  accordance  with the
 provisions of repayment agreements between the agency and  the  director
 of  the  budget,  (b) to reimburse the division of housing and community
 renewal the reasonable costs of the services performed  by  the  commis-
 sioner  of  housing  and  community  renewal and division of housing and
 community renewal pursuant to section fifty-five of this article, (c) to
 pay all costs, expenses and charges of  financing,  including  fees  and
 expenses of trustees and paying agents, (d) for transfers to the capital
 reserve  fund,  (e)  for the payment of the principal of and interest on
 bonds or notes other than state university construction bonds  or  state
 university  construction notes, equity bonds or equity notes, non-profit
 project bonds or non-profit project notes,  hospital  and  nursing  home
 project  bonds  or hospital and nursing home project notes, urban rental
 project bonds or urban rental project notes, health facilities bonds  or
 health facilities notes, youth facilities project bonds or youth facili-
 ties  project notes, community mental health services and [mental retar-
 dation] DEVELOPMENTAL DISABILITIES services project bonds  or  community
 mental  health services and [mental retardation] DEVELOPMENTAL DISABILI-
 TIES services project notes, community senior citizens services  project
 notes  or  community  senior  citizens  services  project  bonds, mental
 hygiene improvement bonds or mental hygiene improvement notes and reven-
 ue housing bonds and bonds and notes for the housing program  issued  by
 the agency when the same shall become due whether at maturity or on call
 for redemption and for the payment of any redemption premium required to
 be  paid  where  such  bonds or notes are redeemed prior to their stated
 maturities, and to purchase bonds or notes other than  state  university
 construction  bonds or state university construction notes, equity bonds
 or equity notes, non-profit project bonds or non-profit  project  notes,
 hospital  and  nursing  home  project bonds or hospital and nursing home
 project notes, urban rental project bonds or urban rental project notes,
 health facilities bonds or health  facilities  notes,  youth  facilities
 project bonds or youth facilities project notes, community mental health
 services  and  [mental  retardation] DEVELOPMENTAL DISABILITIES services
 project bonds or community mental health services and  [mental  retarda-
 tion]  DEVELOPMENTAL  DISABILITIES  services  project  notes,  community
 senior citizens services project  notes  or  community  senior  citizens
 services  project  bonds,  mental  hygiene  improvement  bonds or mental
 hygiene improvement notes and revenue housing bonds and bonds and  notes
 for  the  housing  program  issued  by the agency, or (f) for such other
 corporate purposes of the agency as the agency in its  discretion  shall
 determine and provide.
   (a)  The agency may create and establish a special fund to be known as
 community mental health services and [mental retardation]  DEVELOPMENTAL
 DISABILITIES services capital reserve fund and may pay into such reserve
 funds  (1)  any  monies appropriated and made available by the state for
 the purposes of such funds, (2) any proceeds of sale of community mental
 health services  and  [mental  retardation]  DEVELOPMENTAL  DISABILITIES
 services  project  notes or community mental health services and [mental
 retardation] DEVELOPMENTAL DISABILITIES services project bonds,  to  the
 extent provided in the resolution of the agency authorizing the issuance
 thereof,  and  (3)  any  other monies which may be made available to the
 agency for the purposes of such accounts from any other source or sourc-
 es. The monies held in or credited to the capital  reserve  fund  estab-

 S. 6789                            22
 
 lished  under  this subdivision except as hereinafter provided, shall be
 used solely for the payment of  principal  of  community  mental  health
 services  and  [mental  retardation] DEVELOPMENTAL DISABILITIES services
 project  bonds  of  the agency secured by such reserve fund, as the same
 mature, the purchase  of  such  community  mental  health  services  and
 [mental  retardation]  DEVELOPMENTAL DISABILITIES services project bonds
 of the agency, the payment of interest on such community  mental  health
 services  and  [mental  retardation] DEVELOPMENTAL DISABILITIES services
 project bonds of the agency, or the payment of  any  redemption  premium
 required  to  be  paid  when  such bonds are redeemed prior to maturity;
 provided, however, that monies in any such fund shall not  be  withdrawn
 therefrom  at any time in such amount as would reduce the amount of such
 fund to less than the maximum amount of principal and interest  maturing
 and becoming due in any succeeding calendar year on the community mental
 health  services  and  [mental  retardation]  DEVELOPMENTAL DISABILITIES
 services project bonds of the agency then  outstanding  and  secured  by
 such reserve fund, except for the purpose of paying principal and inter-
 est  on community mental health services and [mental retardation] DEVEL-
 OPMENTAL DISABILITIES services project bonds of the  agency  secured  by
 such reserve fund maturing and becoming due and for the payment of which
 other  monies  of  the  agency are not available. Any income or interest
 earned by, or increment to, any such community  mental  health  services
 and  [mental  retardation]  DEVELOPMENTAL  DISABILITIES services capital
 reserve fund due to the investment thereof may  be  transferred  to  the
 community  mental health services and [mental retardation] DEVELOPMENTAL
 DISABILITIES services general reserve fund or other fund of the  agency,
 to  the  extent  it  does not reduce the amount of such community mental
 health services  and  [mental  retardation]  DEVELOPMENTAL  DISABILITIES
 services  capital reserve fund below the maximum amount of principal and
 interest maturing and becoming due in any succeeding  calendar  year  on
 all  community  mental health services and [mental retardation] DEVELOP-
 MENTAL DISABILITIES services project bonds of the agency then  outstand-
 ing and secured by such reserve fund.
   (b)  The  agency  shall not issue community mental health services and
 [mental retardation] DEVELOPMENTAL DISABILITIES services  project  bonds
 and notes in an aggregate principal amount exceeding one hundred million
 dollars  excluding community mental health services and [mental retarda-
 tion] DEVELOPMENTAL DISABILITIES services project  bonds  and  community
 mental  health services and [mental retardation] DEVELOPMENTAL DISABILI-
 TIES services project  notes  issued  to  refund  outstanding  community
 mental  health services and [mental retardation] DEVELOPMENTAL DISABILI-
 TIES services project bonds and community  mental  health  services  and
 [mental  retardation] DEVELOPMENTAL DISABILITIES services project notes,
 nor shall it issue community mental health services and [mental retarda-
 tion] DEVELOPMENTAL DISABILITIES services  project  bonds  at  any  time
 secured by the community mental health services and [mental retardation]
 DEVELOPMENTAL  DISABILITIES services capital reserve fund if the maximum
 amount of principal and interest maturing and becoming due in a succeed-
 ing calendar year on the community mental health  services  and  [mental
 retardation] DEVELOPMENTAL DISABILITIES services project bonds outstand-
 ing  and  then  to  be issued and secured by the community mental health
 services and [mental retardation]  DEVELOPMENTAL  DISABILITIES  services
 capital  reserve fund will exceed the amount of such reserve fund at the
 time of issuance, unless the agency, at the time  of  issuance  of  such
 bonds, shall deposit in such reserve fund from the proceeds of the bonds
 so  to be issued, or otherwise, an amount which together with the amount

 S. 6789                            23
 
 then in such reserve fund, will be not less than the maximum  amount  of
 principal  and  interest  maturing  and  becoming  due in any succeeding
 calendar year on the community mental health services and [mental retar-
 dation]  DEVELOPMENTAL  DISABILITIES  services  project bonds then to be
 issued and on all other community mental  health  services  and  [mental
 retardation]  DEVELOPMENTAL  DISABILITIES  services project bonds of the
 agency then outstanding and secured by such reserve fund.
   (c) To assure the continued operation and solvency of the  agency  for
 the  carrying  out  of  the public purposes of this article provision is
 made in paragraph (a) of this subdivision for the  accumulation  in  the
 community  mental health services and [mental retardation] DEVELOPMENTAL
 DISABILITIES services capital reserve fund of an  amount  equal  to  the
 maximum  amount  of  principal and interest maturing and becoming due in
 any succeeding calendar year on all community mental health services and
 [mental retardation] DEVELOPMENTAL DISABILITIES services  project  bonds
 of  the  agency  then  outstanding and secured by such reserve fund.  In
 order further to assure the maintenance of such community mental  health
 services  and  [mental  retardation] DEVELOPMENTAL DISABILITIES services
 capital reserve fund, there shall be annually apportioned  and  paid  to
 the  agency  for  deposit  in  such community mental health services and
 [mental retardation] DEVELOPMENTAL DISABILITIES services capital reserve
 fund such sum, if any, as shall be certified  by  the  chairman  of  the
 agency  to  the  governor  and  director  of  the budget as necessary to
 restore such reserve fund to an amount equal to the  maximum  amount  of
 principal  and  interest  maturing  and  becoming  due in any succeeding
 calendar year on the community mental health services and [mental retar-
 dation] DEVELOPMENTAL DISABILITIES services project bonds of the  agency
 then  outstanding  and secured by such reserve fund. The chairman of the
 agency shall annually, on or before December first, make and deliver  to
 the  governor  and director of the budget his OR HER certificate stating
 the sums, if any, required  to  restore  such  community  mental  health
 services  and  [mental  retardation] DEVELOPMENTAL DISABILITIES services
 capital reserve fund to the amount aforesaid, and the sums so certified,
 if any, shall be apportioned and paid to  the  agency  during  the  then
 current  state fiscal year. The principal amount of bonds secured by the
 community mental health services and [mental retardation]  DEVELOPMENTAL
 DISABILITIES  services  capital  reserve  fund  to which state funds are
 apportionable pursuant to this paragraph shall be limited to  the  total
 amount of bonds and notes outstanding on the effective date of this act,
 plus  the total amount of bonds and notes contracted after the effective
 date of this act to finance projects in progress on the  effective  date
 of  this  act  as  determined  by  the New York state public authorities
 control board created pursuant to section fifty of the  public  authori-
 ties  law  whose affirmative determination shall be conclusive as to all
 matters of law and fact solely  for  the  purposes  of  the  limitations
 contained  in  this paragraph, but in no event shall the total amount of
 bonds so secured by such a capital reserve fund or funds exceed thirteen
 million dollars, excluding bonds issued to refund such outstanding bonds
 until the date of redemption of such outstanding bonds.  As  outstanding
 bonds  so  secured  are  paid,  the  amount  so secured shall be reduced
 accordingly but the  redemption  of  such  outstanding  bonds  from  the
 proceeds of refunding bonds shall not reduce the amount so secured.
   (d)  In  computing  any  community  mental health services and [mental
 retardation] DEVELOPMENTAL DISABILITIES services  capital  reserve  fund
 for  the  purposes of this section, securities in which all or a portion

 S. 6789                            24
 
 of such reserve fund shall  be  invested  shall  be  valued  at  par  if
 purchased at par, or if purchased at other than par, at amortized value.
   13.  The  agency  shall  create  and  establish a special fund (herein
 referred to as community mental health services and [mental retardation]
 DEVELOPMENTAL DISABILITIES services general reserve fund) and shall  pay
 into  such fund all fees and charges collected by the agency pursuant to
 paragraph (c) of subdivision eleven of section forty-four of this  arti-
 cle  and  any  monies which the agency shall transfer from the community
 mental health services and [mental retardation] DEVELOPMENTAL  DISABILI-
 TIES  services  capital reserve fund pursuant to the provisions of para-
 graph (a) of subdivision ten of this section. Such monies and any  other
 monies paid into the community mental health services and [mental retar-
 dation] DEVELOPMENTAL DISABILITIES services general reserve fund may, in
 the discretion of the agency, but subject to agreements with bondholders
 and noteholders, be used by the agency (a) for the repayment of advances
 from the state in accordance with the provisions of repayment agreements
 between  the agency and the director of the budget, (b) to reimburse the
 department of mental  hygiene  the  reasonable  costs  of  the  services
 performed  by  the  commissioner of mental hygiene and the department of
 mental hygiene pursuant to subdivision four  of  section  fifty-five  of
 this  article, including the reasonable costs of such services performed
 by the health and mental hygiene facilities improvement corporation upon
 request by the commissioner of mental hygiene pursuant to the provisions
 of section 75.25 of the mental  hygiene  law,  (c)  to  pay  all  costs,
 expenses  and charges of financing, including fees and expenses of trus-
 tees and paying agents, (d) for transfers to the community mental health
 services and [mental retardation]  DEVELOPMENTAL  DISABILITIES  services
 capital  reserve  fund, (e) for the payment of principal of and interest
 on community mental health services and  [mental  retardation]  DEVELOP-
 MENTAL DISABILITIES services project bonds and notes issued by the agen-
 cy  when  the  same  shall become due whether at maturity or on call for
 redemption and for the payment of any redemption premium required to  be
 paid  where  such  community mental health services and [mental retarda-
 tion] DEVELOPMENTAL DISABILITIES services project bonds  and  notes  are
 redeemed  prior  to  their  stated  maturities and to purchase community
 mental health services and [mental retardation] DEVELOPMENTAL  DISABILI-
 TIES  services  project  bonds or notes issued by the agency, or (f) for
 such other corporate purposes  of  the  agency  as  the  agency  in  its
 discretion shall determine and provide.
   (a)  The  agency may create and establish one or more special funds to
 be known as community mental health services  and  [mental  retardation]
 DEVELOPMENTAL  DISABILITIES  services  capital reserve funds and may pay
 into such reserve funds (1) any monies appropriated and  made  available
 by  the  state  for  the purposes of such funds, (2) any proceeds of the
 sale of community mental health services and [mental retardation] DEVEL-
 OPMENTAL DISABILITIES services project revenue bonds or  notes,  to  the
 extent provided in the resolution of the agency authorizing the issuance
 thereof,  and  (3)  any  other monies which may be made available to the
 agency for the purposes of such fund or funds from any other  source  or
 sources. The monies held in or credited to a capital reserve fund estab-
 lished  under  this  subdivision,  except as hereinafter provided and as
 provided in agreements with bondholders and noteholders, shall  be  used
 solely  for the payment of principal of community mental health services
 and [mental retardation]  DEVELOPMENTAL  DISABILITIES  services  project
 revenue  bonds  of  the agency secured by such reserve fund, as the same
 mature, required payments to any sinking fund established  in  a  resol-

 S. 6789                            25
 
 ution  of  the  agency  for  the amortization of term bonds (hereinafter
 referred to as "sinking fund payments"), the purchase  of  such  revenue
 bonds  of  the  agency, the payment of interest on such revenue bonds of
 the agency, or the payment of any redemption premium required to be paid
 when  such  bonds are redeemed prior to maturity. Any income or interest
 earned by, or increment to, any such community  mental  health  services
 and  [mental  retardation]  DEVELOPMENTAL  DISABILITIES services capital
 reserve fund due to the investment thereof may  be  transferred  to  the
 agency, subject to agreements with bondholders and noteholders.
   (b)  In  computing  any  community  mental health services and [mental
 retardation] DEVELOPMENTAL DISABILITIES services  capital  reserve  fund
 for  the  purposes of this section, securities in which all or a portion
 of such reserve fund shall  be  invested  shall  be  valued  at  par  if
 purchased  at  par,  or if purchased at other than par, at the amortized
 value.
   (c) The agency shall create and establish one or  more  special  funds
 (herein  referred  to  as  community  mental health services and [mental
 retardation] DEVELOPMENTAL DISABILITIES services general reserve  funds)
 and  shall  to  the extent provided in the applicable bond resolution of
 the agency authorizing the issuance of community mental HEALTH  services
 and  [mental  retardation]  DEVELOPMENTAL  DISABILITIES services project
 revenue bonds, pay into any such fund the fees and charges collected  by
 the  agency  pursuant  to paragraph (d) of subdivision eleven of section
 forty-four of this article and any monies which the agency shall  trans-
 fer  from  a  community  mental health services and [mental retardation]
 DEVELOPMENTAL DISABILITIES services capital reserve fund pursuant to the
 provisions of paragraph (a) of this subdivision.  Such  monies  and  any
 other  monies  paid  into a community mental health services and [mental
 retardation] DEVELOPMENTAL DISABILITIES  service  general  reserve  fund
 may,  in  the  discretion  of the agency, but subject to agreements with
 bondholders and noteholders, be used by the agency (i) for the repayment
 of advances from the state in accordance with the provisions  of  repay-
 ment  agreements between the agency and the director of the budget, (ii)
 to reimburse the department of mental hygiene the  reasonable  costs  of
 the  services  performed  by  the commissioner of mental hygiene and the
 department of mental hygiene pursuant to  subdivision  five  of  section
 fifty-five  of  this  article,  including  the  reasonable costs of such
 services  performed  by  the  facilities  development  corporation  upon
 request by the commissioner of mental hygiene pursuant to the provisions
 of  section  75.25  of  the  mental hygiene law, (iii) to pay all costs,
 expenses and charges of financing, including fees and expenses of  trus-
 tees  and paying agents, (iv) for transfers to a community mental health
 services and [mental retardation]  DEVELOPMENTAL  DISABILITIES  services
 capital  reserve  fund, (v) for the payment of principal of and interest
 on community mental health services and  [mental  retardation]  DEVELOP-
 MENTAL  DISABILITIES  services project revenue bonds and notes issued by
 the agency when the same shall become due whether at maturity or on call
 for redemption and for the payment of any redemption premium required to
 be paid where such community mental health services and [mental retarda-
 tion] DEVELOPMENTAL DISABILITIES  services  project  revenue  bonds  and
 notes  are  redeemed  prior  to  their stated maturities and to purchase
 community mental health services and [mental retardation]  DEVELOPMENTAL
 DISABILITIES  services  revenue  bonds or notes issued by the agency, or
 (vi) for such other corporate purposes of the agency as  the  agency  in
 its discretion shall determine and provide.

 S. 6789                            26
 
   §  42.  Paragraphs  a  and  b  of subdivision 1 of section 47-b of the
 private housing finance law, as amended by chapter 471 of  the  laws  of
 1980, are amended to read as follows:
   a.  "Community mental health and [retardation] DEVELOPMENTAL DISABILI-
 TIES facility" shall mean a building, a unit within a building, a  labo-
 ratory,  a  classroom,  a  housing  unit,  a  dining hall, an activities
 center, a library, or any structure on or improvement to  real  property
 of  any  kind or description, including fixtures and equipment which are
 an integral part of such building, unit or structure or  improvement,  a
 walkway, a roadway or a parking lot and improvements and connections for
 water,  sewer, gas, electrical, telephone, heating, air conditioning and
 other utility services, or a combination of any of the foregoing, wheth-
 er for patient care and treatment or staff, staff family or service use,
 located in a city, or in a county not wholly  included  within  a  city,
 authorized  to  provide  community  mental health services in accordance
 with the provisions of article  forty-one  OF  TITLE  E  of  the  mental
 hygiene  law, which is utilized or to be utilized for the administration
 and conduct of programs for [the mentally ill or the mentally  retarded]
 PEOPLE  LIVING  WITH  EITHER  MENTAL ILLNESS OR INTELLECTUAL OR DEVELOP-
 MENTAL DISABILITIES, or both, and for the provision of  services  there-
 for.  A community mental health and retardation facility shall also mean
 and include a residential facility to be operated as a  community  resi-
 dence for the mentally disabled, and a treatment facility for use in the
 conduct  of  an  alcoholism  treatment  program  or of a substance abuse
 treatment program as defined in the mental hygiene law.
   b. "Mental hygiene facility" shall mean a building, a  unit  within  a
 building,  a  laboratory, a classroom, a housing unit, a dining hall, an
 activities center, a library, or any structure on or improvement to real
 property of any kind or description, including  fixtures  and  equipment
 which  are  an  integral  part  of any such building, unit, structure or
 improvement, a walkway, a roadway or a parking lot, and improvements and
 connections for water, sewer, gas, electrical, telephone,  heating,  air
 conditioning  and other utility services, or a combination of any of the
 foregoing, whether for patient care and treatment or staff, staff family
 or service use, located at or related to any state hospital,  any  state
 school,  or any state psychiatric or research institute now or hereafter
 established under the professional jurisdiction, supervision and control
 of the state department of mental hygiene.  A  mental  hygiene  facility
 shall  mean  and  include  a  "community mental health and [retardation]
 DEVELOPMENTAL DISABILITIES facility", unless such facility is  expressly
 excepted  or the context clearly requires otherwise, and shall also mean
 and include a treatment facility for use in the conduct of an alcoholism
 or substance abuse treatment program as defined in  the  mental  hygiene
 law,  unless  such facility is expressly excepted or the context clearly
 requires otherwise. The definition contained in this  subdivision  shall
 not  be  construed  to exclude therefrom a facility to be made available
 under license or permit from the health and  mental  hygiene  facilities
 improvement  corporation  to  a  voluntary  agency at the request of the
 commissioners of the offices of the department of mental hygiene  having
 jurisdiction  thereof  for  use in providing community mental health and
 [retardation] DEVELOPMENTAL DISABILITIES services, or  for  use  in  the
 conduct of an alcoholism or substance abuse treatment program.
   §  43.  Paragraphs  a  and  b  of subdivision 7 of section 47-c of the
 private housing finance law, paragraph a as amended by  chapter  607  of
 the  laws of 1970, and paragraph b as amended by chapter 433 of the laws
 of 1968, are amended to read as follows:

 S. 6789                            27
 
   a. The agency shall have the power to acquire by lease  or  deed  from
 the  health  and  mental  hygiene facilities improvement corporation any
 real property acquired by the corporation pursuant to the provisions  of
 subdivision six of section nine of the [health and mental hygiene facil-
 ities  improvement]  FACILITIES  DEVELOPMENT CORPORATION act (i) for the
 purpose of constructing,  reconstructing,  rehabilitating  or  improving
 thereon  one  or more community mental health and [retardation] DEVELOP-
 MENTAL DISABILITIES facilities or (ii) for the purpose of financing  the
 acquisition, construction, reconstruction, rehabilitation or improvement
 thereon  of one or more community mental health and [retardation] DEVEL-
 OPMENTAL DISABILITIES facilities, pursuant to  the  provisions  of  this
 article  and  the  [health  and  mental  hygiene facilities improvement]
 FACILITIES DEVELOPMENT CORPORATION act.  The agency is hereby authorized
 to lease or sublease such real property and facilities  thereon  to  the
 corporation  for the purpose of making the same available to a city or a
 county not wholly within a city, for use  and  occupancy  in  accordance
 with  the provisions of a lease, sublease or other agreement between the
 corporation and such city or county.
   b. In the event that the agency shall fail, within  five  years  after
 the  date  of a lease or conveyance of such real property from such city
 or county to the corporation, to construct, reconstruct, rehabilitate or
 improve the community  mental  health  and  [retardation]  DEVELOPMENTAL
 DISABILITIES  facility  or  facility  thereon  for  which  such lease or
 conveyance was made, as provided for  in  a  lease,  sublease  or  other
 agreement entered into by such city or county and the corporation, then,
 subject to the terms of any lease, sublease or other agreement undertak-
 en  by  the  agency, such real property and any facilities thereon shall
 revert to the corporation with right of  re-entry  thereupon,  and  such
 lease  or  deed  shall be made subject to such condition of reverter and
 re-entry; provided, however, that as a condition precedent to the  exer-
 cise  of  such right of re-entry the corporation shall pay to the agency
 an amount equal to the sum of the purchase price of such real  property,
 the  depreciated  cost  of any community mental health and [retardation]
 DEVELOPMENTAL DISABILITIES facility or  facilities  constructed,  recon-
 structed,  rehabilitated  or improved thereon and all other costs of the
 agency incident to the acquisition of such lands and  the  financing  of
 construction,  reconstruction, rehabilitation or improvement relating to
 such community mental health and [retardation]  DEVELOPMENTAL  DISABILI-
 TIES  facility  or  facilities,  all as provided in the aforesaid lease,
 sublease or other agreement entered into with the corporation.
   § 44. Subdivision 5 of section 55 of the private housing finance  law,
 as  amended  by  chapter  195 of the laws of 1973, is amended to read as
 follows:
   5. The state commissioner of mental hygiene and the  state  department
 of  mental hygiene are hereby designated to act for and in behalf of the
 agency in servicing the community mental  health  services  and  [mental
 retardation]  DEVELOPMENTAL  DISABILITIES  services  companies  mortgage
 loans of the agency and shall perform such  functions  and  services  in
 connection  with  the  making, servicing and collection of such loans as
 shall be requested by the agency. The agency shall pay to the department
 of mental hygiene from any monies  of  the  agency  available  for  such
 purpose,  such  amounts  as are necessary to reimburse the department of
 mental hygiene for the reasonable cost of the services performed by  the
 commissioner of mental hygiene and department of mental hygiene pursuant
 to  this  section,  including such amounts as are necessary to reimburse
 the health and mental hygiene facilities improvement corporation for the

 S. 6789                            28
 
 reasonable cost of such services performed  by  the  health  and  mental
 hygiene  facilities  improvement corporation upon request by the commis-
 sioner of mental hygiene pursuant to the provisions of section 75.25  of
 the mental hygiene law.
   §  45.  Subdivision 1 of section 1531 of the real property actions and
 proceedings law, as amended by chapter 550  of  the  laws  of  1978,  is
 amended to read as follows:
   1.  A final judgment in favor of either party, in an action brought as
 prescribed in this article, is conclusive, as to the  title  established
 in  the  action, against the other party, known or unknown, including an
 infant, a [mentally retarded] person WITH AN  INTELLECTUAL  OR  DEVELOP-
 MENTAL DISABILITY, a mentally ill person, or an alcohol abuser, and also
 against  every  person  claiming  from,  through or under that party, by
 title accruing after the filing of the judgment roll, or of  the  notice
 of  the  pendency of the action, as prescribed by law; also against each
 person not in being or ascertained at the commencement  of  the  action,
 who  by  any  contingency  contained  in a devise or grant or otherwise,
 could afterward become entitled to a beneficial estate  or  interest  in
 the  property  involved,  provided  that every person in being who would
 have been entitled to such estate or interest if such event had happened
 immediately before the commencement of the action is a party thereto, or
 that a guardian ad litem is appointed, as prescribed by section 1513.
   § 46. Paragraph c of subdivision 1 of section 1515 of the real proper-
 ty actions and proceedings law, as amended by chapter 550 of the laws of
 1978, is amended to read as follows:
   c. Whether any defendant is known or unknown, and whether any  defend-
 ant  is  or  might  be  an infant, [mentally retarded] INTELLECTUALLY OR
 DEVELOPMENTALLY DISABLED, mentally ill or an alcohol abuser.
   § 47. Subdivisions 1, 3 and 4 of section 1651  of  the  real  property
 actions  and  proceedings  law, as amended by chapter 115 of the laws of
 1981, are amended to read as follows:
   1. Where an infant, [mentally retarded] person WITH AN INTELLECTUAL OR
 DEVELOPMENTAL DISABILITY, mentally ill person, alcohol abuser or conser-
 vatee holds real property, in joint tenancy or in  common,  the  general
 guardian  of  the  infant,  or  the committee of the [mentally retarded]
 person WITH AN INTELLECTUAL OR DEVELOPMENTAL  DISABILITY,  mentally  ill
 person,  or alcohol abuser, or conservator of the conservatee, may apply
 to the supreme court or to the county court of the  county  wherein  the
 real  property is situated, for authority to agree to a partition of the
 real property. Where such application affects the interests of an incom-
 petent person or a conservatee who has been committed to a state  insti-
 tution,  and  is  an  inmate thereof, notice of such application must be
 given to the superintendent,  acting  superintendent  or  state  officer
 having  special  jurisdiction over the institution where the incompetent
 person or conservatee is confined. Irrespective of the location  of  any
 real  property  held  by an infant in joint tenancy or in common, his OR
 HER general guardian may make such application to the surrogate's  court
 which appointed such guardian. A certified copy of the decree entered in
 the surrogate's court on such application must be recorded in the office
 of  the  clerk  of each county in which is situated property affected by
 such decree.
   3. If, after due inquiry into the merits  of  the  application,  by  a
 reference  or  otherwise, the court is of the opinion that the interests
 of the infant, or of the [mentally retarded] person WITH AN INTELLECTUAL
 OR DEVELOPMENTAL DISABILITY, mentally  ill  person,  alcohol  abuser  or
 conservatee,  will be promoted by the partition proposed, it may make an

 S. 6789                            29
 
 order authorizing the petitioner to agree to the partition proposed, and
 in the name of the infant, or of the [mentally retarded] person WITH  AN
 INTELLECTUAL  OR  DEVELOPMENTAL DISABILITY, mentally ill person, alcohol
 abuser  or  conservatee,  to  execute  releases  of his OR HER right and
 interest in and to that part of the property which falls to  the  shares
 of  the  other joint-tenants or tenants in common. The court may, in its
 discretion, for  the  furtherance  of  the  interests  of  said  infant,
 [mentally  retarded]  person WITH AN INTELLECTUAL OR DEVELOPMENTAL DISA-
 BILITY, mentally ill  person,  alcohol  abuser  or  conservatee,  direct
 partition  to be so made as to set off to him or them his or their share
 in common with any of the other owners, provided the consent in  writing
 thereto of such owners shall be first obtained.
   4.  Releases so executed have the same validity and effect, as if they
 were executed by the person in whose behalf they are executed, and as if
 the infant was of full age, or the [mentally retarded]  person  WITH  AN
 INTELLECTUAL  OR DEVELOPMENTAL DISABILITY, mentally ill person, or alco-
 hol abuser was of sound  mind,  and  competent  to  manage  his  OR  HER
 affairs, or the conservatee was competent to manage his OR HER affairs.
   §  48.  Section 11 of the real property law, as amended by chapter 550
 of the laws of 1978, is amended to read as follows:
   § 11. Capacity to transfer real property. A person other than a minor,
 a [mentally retarded] person WITH AN INTELLECTUAL OR DEVELOPMENTAL DISA-
 BILITY, or person of unsound mind, seized of or entitled to an estate or
 interest in real property, may transfer such estate or interest.
   § 49. Paragraph (a) of subdivision 1 of section 422 of the real  prop-
 erty  tax law, as amended by chapter 409 of the laws of 1993, is amended
 to read as follows:
   (a) Real property owned  by  a  not-for-profit  corporation  organized
 pursuant  to  the  not-for-profit  corporation law and the provisions of
 article two of the private housing  finance  law,  used  exclusively  to
 provide  housing and auxiliary facilities for faculty members, students,
 employees, nurses, interns, resident physicians, researchers  and  other
 personnel  and  their  immediate  families  in attendance or employed at
 colleges, universities,  educational  institutions,  child  care  insti-
 tutions,  hospitals  and medical research institutes, or for handicapped
 or aged persons of low income,  or  owned  by  non-profit  nursing  home
 companies  organized  pursuant to the not-for-profit corporation law and
 the provisions of article twenty-eight-A of the public health law,  used
 exclusively  to  provide  facilities  for nursing care to sick, invalid,
 infirm, disabled or convalescent persons of low income,  or  to  provide
 health-related  service as defined in article twenty-eight of the public
 health law to persons of low income, or any combination of  the  forego-
 ing, and in addition thereto, to provide nursing care and health-related
 service,  or  either of them, to persons of low income who are not occu-
 pants of the project, or owned by  housing  development  fund  companies
 organized  pursuant  to  the  not-for-profit corporation law and article
 eleven of the private housing finance law, used exclusively  to  provide
 housing for handicapped or aged persons of low income, and financed by a
 federally-aided  mortgage as defined in said article eleven, or owned by
 companies organized pursuant to the not-for-profit corporation  law  and
 the  provisions of article seventy-five OF TITLE E of the mental hygiene
 law, used exclusively to provide care,  treatment,  training,  education
 and residential accommodations for operation as hostels for the mentally
 ill  or  [mentally retarded] INTELLECTUALLY OR DEVELOPMENTALLY DISABLED,
 or owned by companies organized pursuant to the membership  corporations
 law and the provisions of article seven-A of the private housing finance

 S. 6789                            30
 
 law, used exclusively to provide programs, services and other facilities
 for  the aging, shall be exempt from taxation and exempt from special ad
 valorem levies and special assessments to the extent provided in section
 four  hundred  ninety of this chapter, provided, however, that in a city
 having a population of one million or more real property  owned  by  any
 such  corporation  which  is to provide housing accommodations, substan-
 tially all of which are or are to be assisted by rent subsidies made  or
 to  be  made  available by the Federal government pursuant to a contract
 under section eight of the United States Housing Act of nineteen hundred
 thirty-seven, as amended, or pursuant to  a  project  rental  assistance
 contract  under section two hundred two of the United States Housing Act
 of nineteen hundred fifty-nine, as amended, or  pursuant  to  a  project
 rental  assistance  contract  under  section eight hundred eleven of the
 National Affordable Housing Act of nineteen hundred ninety, as  amended,
 shall  from  and  after  the  commencement of construction be subject to
 taxation or exempt therefrom to the extent approved  by  a  municipality
 acting  through  its  local  legislative body, as such local legislative
 body is defined in [paragraph] SUBDIVISION twelve of section two of  the
 private  housing finance law. No such corporation or company shall pay a
 dividend on any of its stock or pay interest on any of  its  debentures.
 Provided  further,  however,  in  a  county  having  a population of one
 million or more and having not more than three towns within such county,
 real property owned by  housing  development  fund  companies  organized
 pursuant to the not-for-profit corporation law and article eleven of the
 private  housing  finance  law,  used exclusively to provide housing for
 handicapped or aged persons of low income, and financed by a  federally-
 aided  mortgage  as  defined in said article eleven shall from and after
 the commencement of construction be subject to taxation or exempt there-
 from to the extent approved by a municipality acting through  its  local
 legislative  body,  as  such local legislative body is defined in [para-
 graph] SUBDIVISION twelve of section two of the private housing  finance
 law. Any tax payments and/or payments in lieu of taxes made to a munici-
 pality  pursuant  to  the preceding sentence shall not be passed through
 nor become the liability of any of the occupants of such property.
   § 50. Paragraph (k) of subdivision 1 of section 364-j  of  the  social
 services  law, as amended by chapter 649 of the laws of 1996, is amended
 to read as follows:
   (k) "Special care". Care, services and supplies relating to the treat-
 ment of mental illness, [mental retardation,] INTELLECTUAL  OR  develop-
 mental  disabilities,  alcoholism,  alcohol abuse or substance abuse, or
 HIV infection/AIDS.
   § 51. Subdivision 4 of section 365-g of the social  services  law,  as
 amended  by  section  31 of part C of chapter 58 of the laws of 2008, is
 amended to read as follows:
   4. The utilization thresholds established  pursuant  to  this  section
 shall  not  apply  to  [mental retardation and] INTELLECTUAL OR develop-
 mental disabilities services provided in clinics certified under article
 twenty-eight of the public health law, or article twenty-two OF TITLE  D
 or article thirty-one OF TITLE E of the mental hygiene law.
   §  52.  Subparagraph (ii) of paragraph (d) of subdivision 6 of section
 367-a of the social services law, as added by chapter 41 of the laws  of
 1992, is amended to read as follows:
   (ii) out-patient hospital and clinic services except for mental health
 services,  [mental  retardation  and]  INTELLECTUAL OR and developmental
 disability services, alcohol and substance abuse services and  methadone
 maintenance services;

 S. 6789                            31
 
   § 53. Paragraph (p) of subdivision 1 of section 261 of the tax law, as
 amended  by  chapter  365  of  the  laws  of 2005, is amended to read as
 follows:
   (p)  with respect to the remaining counties of the state except Catta-
 raugus county which have not suspended the imposition of such additional
 tax pursuant to subdivision two of section two  hundred  fifty-three  of
 this  article,  to  the  comptroller  to  be paid by him or her into the
 general fund in the state treasury to the credit of the  state  purposes
 account; provided that money paid to the comptroller with respect to any
 such  remaining  county  in  which  on the date of such payment any mass
 transportation, airport or aviation, municipal historic site,  municipal
 park,  community mental health and [retardation] DEVELOPMENTAL DISABILI-
 TIES facility, or sewage treatment capital project is being carried  out
 by  a  municipality with state aid, or for which state aid will be paid,
 pursuant to the provisions of title one of chapter seven hundred  seven-
 teen  of  the laws of nineteen hundred sixty-seven, section 17.05 of the
 parks, recreation and historic preservation law, section  41.18  of  the
 mental hygiene law, or section 17-1903 of the environmental conservation
 law,  shall  be  applied by him or her to increase the amount of aid for
 which the state is obligated in respect to such project  on  such  date,
 provided  that any such increase in state aid may not, together with any
 federal funds paid or to be paid on account of the cost of such project,
 exceed the total cost thereof, and where  more  than  one  such  capital
 project is being carried out on such date within such county, the appli-
 cation  of  such monies by the comptroller shall be pro-rated among such
 municipalities on the basis of the respective amounts of state aid which
 are so obligated on such date; and
   § 54. Subdivisions 10 and 19 of section 3 of section 1 of chapter  359
 of the laws of 1968, constituting the facilities development corporation
 act,  subdivision  10 as amended by section 1 of part N of chapter 59 of
 the laws of 2016 and subdivision 19 as amended by section 1 of part H of
 chapter 58 of the laws of 2008, are amended to read as follows:
   10. "Mental hygiene facility" shall mean a building, a unit  within  a
 building,  a  laboratory, a classroom, a housing unit, a dining hall, an
 activities center, a library, real property of any kind or  description,
 or  any  structure on or improvement to real property, or an interest in
 real property, of any kind or description, owned by or under the  juris-
 diction  of  the corporation, including fixtures and equipment which are
 an integral part of any such building, unit, structure or improvement, a
 walkway, a roadway or a parking lot, and  improvements  and  connections
 for  water, sewer, gas, electrical, telephone, heating, air conditioning
 and other utility services, or a combination of any  of  the  foregoing,
 whether for patient care and treatment or staff, staff family or service
 use,  located at or related to any psychiatric center, any developmental
 center, or any state psychiatric or research institute or other facility
 now or hereafter established under  the  department.  A  mental  hygiene
 facility  shall  also  mean  and  include  a residential care center for
 adults, a "community mental health and [retardation] DEVELOPMENTAL DISA-
 BILITIES facility" and a treatment facility for use in the conduct of an
 alcoholism or substance abuse treatment program as defined in the mental
 hygiene law unless such residential care center  for  adults,  community
 mental  health  and [retardation] DEVELOPMENTAL DISABILITIES facility or
 alcoholism or substance abuse facility is  expressly  excepted,  or  the
 context  clearly requires otherwise, and shall also mean and include any
 treatment facility for use in the conduct of an alcoholism or  substance
 abuse  treatment  program  that is also operated as an associated health

 S. 6789                            32
 
 care facility. The definition contained in this subdivision shall not be
 construed to exclude therefrom a facility owned or leased by one or more
 voluntary  agencies  that  is  to  be  financed,  refinanced,  designed,
 constructed,  acquired,  reconstructed,  rehabilitated or improved under
 any lease, sublease, loan or other financing agreement entered into with
 such voluntary agencies, and shall not be construed to exclude therefrom
 a facility to be made available from  the  corporation  to  a  voluntary
 agency at the request of the commissioners of the offices of the depart-
 ment  having  jurisdiction  thereof.  The  definition  contained in this
 subdivision shall not be construed to exclude therefrom a facility  with
 respect  to  which  a voluntary agency has an ownership interest in, and
 proprietary lease from, an organization formed for the  purpose  of  the
 cooperative ownership of real estate.
   19. "Voluntary agency" means a corporation organized under or existing
 pursuant to the not-for-profit corporation law providing or, pursuant to
 a  written  agreement  with  the  appropriate  commissioner, approved to
 provide housing that includes residences for persons with  mental  disa-
 bilities,  or  services benefitting or assisting in the care, treatment,
 rehabilitation or  maintenance  of  persons  with  mental  disabilities,
 community  mental  health  or  residential  services,  community [mental
 retardation]   DEVELOPMENTAL   DISABILITIES   services,   or    alcohol,
 substance-abuse,  or  chemical-dependency residential or non-residential
 treatment services, or for any combination of  the  foregoing.  Notwith-
 standing  any  other  provision of law to the contrary, voluntary agency
 shall also include any entity receiving financing, approvals or  assist-
 ance  of  any  form  from  the state housing finance agency or the state
 division of housing and community renewal for  one  or  more  integrated
 housing projects including projects serving persons with mental disabil-
 ities,  which  shall  be  approved by the appropriate commissioner. Such
 commissioner is hereby authorized to enter into any agreements necessary
 or useful for such projects, subject to the approval of the director  of
 the budget.
   §  55.  The  first undesignated paragraph of section 2 of section 1 of
 chapter 359 of the laws of 1968, constituting the facilities development
 corporation act, as separately amended by chapters 195 and  658  of  the
 laws of 1973, is amended to read as follows:
   It is hereby found and declared that the provision of new and improved
 state  facilities relating to the care, maintenance and treatment of the
 mentally disabled must be accelerated  if  the  state  is  to  meet  its
 responsibilities  in the face of an increasing state population, a grow-
 ing awareness that mental disability can be treated effectively, and new
 research advances in treatment methods. An expanded construction program
 is essential to relieve overcrowding in  the  state  hospitals  for  the
 mentally  ill,  to  provide  treatment and care for the increasing popu-
 lation of [mentally retarded] PEOPLE WITH INTELLECTUAL OR  DEVELOPMENTAL
 DISABILITIES  in  state  schools,  and  to  permit  the establishment of
 special treatment programs for mentally ill  and  emotionally  disturbed
 children  and  for  the  mentally  ill  blind and the mentally ill deaf.
 Existing state facilities require substantial modernization  and  struc-
 tural  change  to accommodate new concepts of treatment for the mentally
 disabled and special units for the treatment of alcoholism and narcotics
 addiction.   Larger and better  equipped  research  facilities  must  be
 installed in order to insure that state treatment units are in the fore-
 front  of  applying  and developing advanced therapeutic methods. At the
 same time, improved training  facilities  and  quarters  are  needed  to
 attract and retain the best-qualified staff personnel.

 S. 6789                            33
 
   §  56.  The  third undesignated paragraph of section 2 of section 1 of
 chapter 359 of the laws of 1968, constituting the facilities development
 corporation act, as amended by chapter 547  of  the  laws  of  1979,  is
 amended to read as follows:
   It  is  further  found  and  declared  that  the  provision of new and
 improved community mental health and [retardation]  DEVELOPMENTAL  DISA-
 BILITIES  facilities must be accelerated, in order to provide comprehen-
 sive care and treatment of the  mentally  ill  and  [mentally  retarded]
 DEVELOPMENTALLY  DISABLED.    Such community mental health and [retarda-
 tion] DEVELOPMENTAL DISABILITIES facilities should be located  close  to
 the people they serve, in order to speed rehabilitation and restoration,
 by involving families and community resources to the extent practicable.
 Such  an  accelerated  construction program will also help relieve over-
 crowding  in  state  facilities  for  the  mentally  ill  and  [mentally
 retarded]  DEVELOPMENTALLY  DISABLED  and will afford treatment and care
 for the increasing number of [mentally retarded]  PEOPLE  WITH  DEVELOP-
 MENTAL  DISABILITIES.  Such  a program will increase the number of local
 facilities for out-patient care and short-term in-patient care,  includ-
 ing  after  care,  diagnostic  and rehabilitative services, training and
 research. While the responsibility for the  professional  care,  mainte-
 nance and treatment of the mentally ill and [mentally retarded] DEVELOP-
 MENTALLY  DISABLED at all such community mental health and [retardation]
 DEVELOPMENTAL DISABILITIES  facilities  should  continue  in  the  local
 governments,  subject  to the provisions of article forty-one OF TITLE E
 of the mental hygiene law and the regulations of  the  commissioners  of
 the  offices of the department having jurisdiction thereof, the legisla-
 ture further finds and declares that the Facilities  Development  Corpo-
 ration should be empowered to aid cities and counties, at their request,
 to  provide  new  and improved community mental health and [retardation]
 DEVELOPMENTAL DISABILITIES facilities in order to  insure  their  timely
 construction,  acquisition,  reconstruction, rehabilitation and improve-
 ment in relation to current and foreseeable needs and the  emergence  of
 new  patterns  of  treatment and care and should be empowered to receive
 and administer monies for such purpose.
   § 57. Paragraph a of subdivision 8 and subdivision 13 of section 5  of
 section  1  of chapter 359 of the laws of 1968, constituting the facili-
 ties development corporation  act,  paragraph  a  of  subdivision  8  as
 amended  by chapter 58 of the laws of 1987 and subdivision 13 as amended
 by chapter 723 of the laws of 1993, are amended to read as follows:
   a. With the approval of the appropriate commissioner of the department
 and the director of the budget, to purchase real property  necessary  or
 convenient  for  a  mental hygiene facilities improvement program in the
 name of the state, except where such purchase  is  for  the  purpose  of
 providing  community mental health and [retardation] DEVELOPMENTAL DISA-
 BILITIES facilities in which case such purchase  shall  be  in  its  own
 name;  provided, however, that all such purchases shall be made pursuant
 to legislation or appropriations in accordance with section nine of this
 act. Nothing in this section contained shall be  construed  to  prohibit
 the  acquisition  of  real  property by purchase or appropriation by the
 appropriate commissioner of the department pursuant to article  seventy-
 one  OF  TITLE  E  of  the  mental hygiene law for the purpose of making
 mental hygiene facilities available under license  or  permit  from  the
 corporation  to  a voluntary agency, subject to the terms and conditions
 of any lease, sublease, loan or other financing agreement with the state
 housing finance agency or the  state  medical  care  facilities  finance
 agency,  (i)  for use in providing community mental health and [retarda-

 S. 6789                            34

 tion] DEVELOPMENTAL DISABILITIES services, including services in a resi-
 dential care center for adults, or (ii) for the conduct of an alcoholism
 or substance abuse treatment program as defined in article  nineteen  OF
 TITLE D of the mental hygiene law.
   13.  Subject  to the terms and conditions of any lease, sublease, loan
 or other financing agreement with the state housing  finance  agency  or
 the  state  medical  care facilities finance agency, and to the determi-
 nation of the appropriate commissioner of the  department,  and  in  the
 case of community mental health and [retardation] DEVELOPMENTAL DISABIL-
 ITIES  facilities,  of  the city or county, that such real property held
 for the purposes of a mental hygiene facilities improvement  program  is
 unnecessary  for  the  present  or  foreseeable future needs of a mental
 hygiene facility, with the approval of the director of  the  budget,  to
 convey  for fair value any right, title or interest of the people of the
 state of New York in and to such real property to any appropriate  state
 agency,  or  public  corporation, city or county for other public use or
 for sale, lease or other disposition in accordance with law, real  prop-
 erty  held by the corporation, provided, however, nothing in this subdi-
 vision shall be deemed to supercede the provisions of section  41.34  of
 the  mental  hygiene  law  and provided further that any such conveyance
 shall be subject to, and consistent with the terms  and  objectives  of,
 any  plan  developed  by the state interagency council on mental hygiene
 property utilization. The corporation shall provide  written  notice  at
 least  thirty days in advance of the effective date of any conveyance to
 the governor, the majority leader of the senate and the speaker  of  the
 assembly.  No  conveyance  as  authorized  in  this subdivision that may
 adversely affect the tax exempt nature of any such lease, sublease, loan
 or other financing agreement with the state housing  finance  agency  or
 the  New  York  state  medical  care facilities finance agency may occur
 until the attorney general or other designated bond  counsel  determines
 in  writing  that the conveyance is consistent with all applicable state
 and federal  laws,  rules  and  regulations,  and  with  deeds,  leases,
 subleases,  loan  agreements, financing agreements, and bond resolutions
 relating to or affected by the conveyance, and that the conveyance  does
 not  impair  the  tax exempt status of outstanding obligations issued by
 the state housing finance agency or the  New  York  state  medical  care
 facilities   finance   agency   to  finance  or  refinance  the  design,
 construction, acquisition, reconstruction, rehabilitation or improvement
 of mental health service facilities as defined in  the  New  York  state
 medical care facilities finance agency act.
   § 58. Subdivisions 3, 4 and 5 of section 6 of section 1 of chapter 359
 of the laws of 1968, constituting the facilities development corporation
 act,  subdivisions 3 and 4 as amended by chapter 547 of the laws of 1979
 and subdivision 5 as amended by chapter 351 of the  laws  of  1985,  are
 amended to read as follows:
   3.  To  provide mental hygiene facilities, other than community health
 and [retardation] DEVELOPMENTAL DISABILITIES facilities, for  the  care,
 maintenance  and  treatment  of  the mentally disabled, for research and
 training related thereto, and for the members  of  the  staff  of  state
 institutions  in  the  department and their families, to reduce the time
 lag between determination of need for such facilities and  actual  occu-
 pancy   thereof,  to  expedite  the  construction,  acquisition,  recon-
 struction, rehabilitation or improvement of such facilities,  to  assure
 that  the  same are completed and ready for the purposes intended in the
 light of foreseeable needs, to assure  exclusive  possession,  jurisdic-
 tion,  control  and  supervision  over  all mental hygiene facilities in

 S. 6789                            35
 
 order to effectuate the aforesaid purposes and to make  such  facilities
 available  to  the appropriate commissioner of the department for use in
 the care, maintenance and treatment of the mentally disabled.
   4.  To provide community mental health and [retardation] DEVELOPMENTAL
 DISABILITIES facilities for the mentally disabled, for out-patient  care
 and  short-term in-patient care, including after care and diagnostic and
 rehabilitative services and  training  and  research,  for  and  at  the
 request  of  cities and counties not wholly within a city, authorized to
 provide  community  mental  health  services  in  accordance  with   the
 provisions of article forty-one OF TITLE E of the mental hygiene law, to
 reduce  the  time  between determination of the need for such facilities
 and actual occupancy thereof, to expedite the construction, acquisition,
 reconstruction, rehabilitation or improvement  of  such  facilities,  to
 assure  that  the same are completed and ready for the purposes intended
 in the light of current and foreseeable needs, all as  approved  by  the
 appropriate commissioner of the department.
   5.  To  provide  mental  hygiene facilities to be made available under
 license or permit from the corporation  to  voluntary  agencies  at  the
 request  of the appropriate commissioner of the department in accordance
 with the provisions of this act for use in  providing  community  mental
 health   and   [retardation]  DEVELOPMENTAL  DISABILITIES  services  and
 services in a residential care center for adults.
   § 59. Paragraphs b and c of subdivision 1 of section 9 of section 1 of
 chapter 359 of the laws of 1968, constituting the facilities development
 corporation act, paragraph b as amended by chapter 58  of  the  laws  of
 1987  and paragraph c as amended by chapter 547 of the laws of 1979, are
 amended to read as follows:
   b. The directors of the corporation  shall  prepare  or  cause  to  be
 prepared for the state housing finance agency or the medical care facil-
 ities finance agency, within the amounts appropriated therefor or other-
 wise  available,  the  building  plans,  the exterior drawings or models
 displaying the architectural concept of  each  mental  hygiene  facility
 thereafter  to be constructed, reconstructed, rehabilitated or improved,
 and the detailed plans and specifications  for  all  such  construction,
 reconstruction, rehabilitation and improvement work to be performed, all
 of  which  shall  be subject to the separate approval of the appropriate
 commissioner of the department and, in  the  case  of  community  mental
 health  and  [retardation] DEVELOPMENTAL DISABILITIES facilities, of the
 governing body of the city or county or  of  such  officer,  department,
 agency  or  community  mental  health board as may be designated by such
 governing body for the purpose of such approval. The  directors  of  the
 corporation, except in the case of community mental health and [retarda-
 tion]  DEVELOPMENTAL  DISABILITIES  facilities,  may  cause the building
 plans, drawings, models and detailed plans and specifications  for  such
 work  to  be prepared under the direction of the commissioner of general
 services in accordance with the terms  of  any  agreement  entered  into
 between  the  corporation  and such commissioner pursuant to subdivision
 two of this section. In the case of community mental health and  [retar-
 dation]  DEVELOPMENTAL  DISABILITIES  facilities,  the  directors of the
 corporation may cause such building plans, drawings, models and detailed
 plans and specifications for such work to be prepared by its own employ-
 ees, or on a contract basis, or by agreement with a city  or  county  or
 with any state department or agency authorized to perform such work.
   The  detailed  plans  and  specifications  for  any  such  work  to be
 performed pursuant to a contract  shall  comply  with  the  construction
 standards in effect at the time the contract is executed.

 S. 6789                            36
 
   Subject  to the terms of any agreement entered into between the corpo-
 ration and the commissioner of general services pursuant to  subdivision
 two  of  this  section and between the corporation and the state housing
 finance agency or the medical care facilities finance agency pursuant to
 such  section,  the  directors  of the corporation may from time to time
 modify, or authorize modifications to, such detailed plans and  specifi-
 cations  provided  (i)  that the plans and specifications as so modified
 shall comply with the construction standards, if any,  adopted  pursuant
 to  paragraph  a  of  this  subdivision and in effect at the time of the
 modification, and (ii) that such modifications, if substantial, are made
 with the separate  approval  of  the  appropriate  commissioner  of  the
 department and, in the case of community mental health and [retardation]
 DEVELOPMENTAL  DISABILITIES  facilities,  of  such governing body of the
 city or county or of  such  officer,  department,  agency  or  community
 mental  health board as may be designated by such governing body for the
 purpose of such approval, and (iii) that in  the  event  an  amount  for
 contingencies  is appropriated or advanced to the corporation to pay the
 added costs during the then current state fiscal year of  all  modifica-
 tions made in the course of construction, reconstruction, rehabilitation
 and  improvement  of  mental  hygiene  facilities, no such modifications
 shall be made or authorized in such fiscal year without the approval  of
 the  director  of  the budget unless the cost thereof shall be less than
 five percentum of the total estimated cost of the facility as set  forth
 in the budget bill referred to in paragraph a of subdivision two of this
 section,  but in no event shall any such modification be made or author-
 ized in such fiscal year if the cost  thereof,  plus  the  cost  of  all
 modifications  theretofore  made  or  authorized  during  the same state
 fiscal year, would exceed the amount for contingencies  appropriated  or
 advanced  for  the  purpose  of such modifications, and (iv) that in the
 event an amount for contingencies is not appropriated for the purpose of
 such modifications, no such modification involving an estimated  expense
 of  ten thousand dollars or more shall be made or authorized without the
 prior approval of the director of the budget.
   c. In the design, construction, acquisition, reconstruction, rehabili-
 tation, alteration and improvement of mental hygiene  facilities  to  be
 made available under license or permit from the corporation to voluntary
 agencies  for use in providing community mental health and [retardation]
 DEVELOPMENTAL DISABILITIES services, the corporation shall  be  governed
 by the provisions of this act relating to the design and construction of
 mental  hygiene  facilities provided, however, that the program for each
 such facility shall have been prepared  under  the  supervision  of  the
 appropriate  commissioner  of  the  department  pursuant  to  the mental
 hygiene law at the  request  of  such  voluntary  agency  and  with  the
 approval  of  the  community mental health board established pursuant to
 article forty-one OF TITLE E of the mental hygiene law.
   § 60. The opening paragraph of subparagraph (i) and subparagraph  (ii)
 of paragraph b of subdivision 2 of section 9 of section 1 of chapter 359
 of the laws of 1968, constituting the facilities development corporation
 act, the opening paragraph of subparagraph (i) as amended by chapter 166
 of  the  laws of 1991 and subparagraph (ii) as amended by chapter 658 of
 the laws of 1973, are amended to read as follows:
   The corporation may design, construct, reconstruct,  rehabilitate  and
 improve  a mental hygiene facility, other than a community mental health
 and [retardation] DEVELOPMENTAL DISABILITIES facility, whether as  prin-
 cipal  or  as  agent for the state housing finance agency or the medical
 care facilities finance agency, only by agreement with the  commissioner

 S. 6789                            37
 
 of  general  services, except that in the case a mental hygiene facility
 owned  or  leased  by  a  voluntary  agency  that  is  to  be  designed,
 constructed,  reconstructed, rehabilitated and improved under any lease,
 sublease,  loan  or  other  financing  agreement  entered into with such
 voluntary agency, or jointly with such voluntary agency and one or  more
 voluntary  agencies that operate such facility the same may be designed,
 constructed, reconstructed, rehabilitated and improved by such voluntary
 agencies, and except that:
   (ii) The corporation, with the approval of the director of the budget,
 may construct, reconstruct, rehabilitate and improve a community  mental
 health  and [retardation] DEVELOPMENTAL DISABILITIES facility by its own
 employees, by agreement with a city or county or with any state  depart-
 ment  or  agency authorized to perform such work, or by contract awarded
 pursuant to paragraph g of this subdivision. All contracts awarded by  a
 city or county on behalf of the corporation shall be awarded pursuant to
 paragraph  g  of  this subdivision, notwithstanding any provision of any
 general, special or local law or any charter.
   § 61. Paragraphs a and b of subdivision 3 of section 9 of section 1 of
 chapter 359 of the laws of 1968, constituting the facilities development
 corporation act, paragraph a as amended by chapter 723 of  the  laws  of
 1993  and paragraph b as amended by section 48 of part TTT of chapter 59
 of the laws of 2019, are amended to read as follows:
   a. Subject to the provisions of this act, the directors of the  corpo-
 ration  shall  receive,  accept, invest, administer, expend and disburse
 for its corporate purposes, other than for the purposes  of  any  health
 facilities  improvement program, (i) all payments made on or after Janu-
 ary 1, 1964, for the care, maintenance  and  treatment  of  patients  in
 every  mental hygiene facility, other than a community mental health and
 [retardation] DEVELOPMENTAL DISABILITIES facility or  a  mental  hygiene
 facility  made available under license or permit from the corporation to
 a voluntary agency for use in  providing  community  mental  health  and
 [retardation]  DEVELOPMENTAL  DISABILITIES  services,  or  an  office of
 [alcoholism  and  substance  abuse  services]  ADDICTION  SERVICES   AND
 SUPPORTS facility made available under license or permit from the corpo-
 ration  to a voluntary agency for use in the conduct of an alcoholism or
 substance abuse treatment program, (ii) all payments made to the  corpo-
 ration  by  a  lessee  or permittee as rentals, permit fees or otherwise
 under any lease, sublease, permit or agreement undertaken  with  respect
 to  a  community mental health and [retardation] DEVELOPMENTAL DISABILI-
 TIES facility or current or former mental hygiene  facility  or  from  a
 voluntary  agency  with respect to a mental hygiene facility made avail-
 able under lease, license or permit from the corporation to a  voluntary
 agency,  and (iii) all payments made to the corporation for the purchase
 of real property held by the corporation for the use of the  department,
 other  than payments derived from New York state medical care facilities
 finance agency financing or refinancing  of  the  design,  construction,
 acquisition,  reconstruction,  rehabilitation, improvement or renovation
 of state operated mental hygiene facilities, and  may  receive,  accept,
 invest,  administer,  expend  and  disburse  for its corporate purposes,
 other than  for  the  purposes  of  any  health  facilities  improvement
 program,  appropriations  or advances from the capital projects fund and
 the state purposes account of the general fund of the state,  and  other
 revenues and monies made available or to be made available to the corpo-
 ration  from  any  or  all  sources,  including gifts, grants, loans and
 payments from the federal government,  any  state  agency,  any  county,
 city,  town or village, any private foundation, organization or individ-

 S. 6789                            38
 
 ual, or any other source,  for  the  construction,  acquisition,  recon-
 struction,  rehabilitation and improvement of mental hygiene facilities,
 and for the maintenance and repair of such facilities.
   b.  All  monies  of  the  corporation received or accepted pursuant to
 paragraph a of this subdivision, other than appropriations and  advances
 from  the  state  and except as otherwise authorized or provided in this
 section, shall be paid to the commissioner of taxation  and  finance  as
 agent  of  the corporation, who shall not commingle such monies with any
 other monies. Such monies shall be deposited in  two  or  more  separate
 bank  accounts. One of such accounts, to which shall be credited (i) all
 payments made on or after January 1, 1964, for the care, maintenance and
 treatment of patients in every mental hygiene  facility,  other  than  a
 community  mental  health  and  [retardation] DEVELOPMENTAL DISABILITIES
 facility, (ii) all payments made to the corporation  as  rentals,  lease
 payments,  permit  fees or otherwise under any lease, sublease or agree-
 ment undertaken with respect to a community mental health and  [retarda-
 tion]  DEVELOPMENTAL DISABILITIES facility or a current or former mental
 hygiene facility, (iii) all payments made to  the  corporation  for  the
 purchase  of  real  property  held by the corporation for the use of the
 department, other than payments derived from New York state medical care
 facilities finance  agency  financing  or  refinancing  of  the  design,
 construction,  acquisition,  reconstruction, rehabilitation, improvement
 or renovation of state operated  mental  hygiene  facilities,  (iv)  all
 income  from  investments  and (v) all monies received or to be received
 for the purposes of such account on a recurring basis, shall be  denomi-
 nated  the  "mental hygiene facilities improvement fund income account".
 The monies in any account shall be paid out  on  checks  signed  by  the
 commissioner  of  taxation and finance on requisition of the chairman of
 the corporation or of such other officer  or  employee  or  officers  or
 employees  as  the corporation shall authorize to make such requisition.
 All deposits of such money shall, if required  by  the  commissioner  of
 taxation  and finance or the directors of the corporation, be secured by
 obligations of the United States or of the state of a market value equal
 at all times to the amount of the deposit and all banks and trust compa-
 nies are authorized to give such security for such deposits. Any  moneys
 of  the  corporation not required for immediate use or disbursement may,
 at the discretion of the corporation, be invested by the commissioner of
 taxation and finance in accordance with the provisions of  section  98-a
 of the state finance law. The mental hygiene facilities improvement fund
 and  the  income  account therein shall remain in existence until termi-
 nated by the corporation by written notice to the commissioner of  taxa-
 tion and finance. Any moneys on deposit in the mental hygiene facilities
 improvement  fund  or the income account therein upon the termination of
 said fund and account shall be transferred by the commissioner of  taxa-
 tion  and  finance  to  the mental health services fund. The corporation
 shall not terminate the mental hygiene facilities improvement  fund  and
 the  income  account therein until all mental health services facilities
 bonds issued pursuant to: (i) the New York state medical care facilities
 finance agency act; (ii) article [five-c] FIVE-C of  the  state  finance
 law;  and  (iii)  article  [five-f]  FIVE-F of the state finance law and
 payable from the income account as described  in  paragraph  g  of  this
 subdivision are no longer outstanding.
   §  62.  The fifth undesignated paragraph of subdivision 5 of section 9
 of section 1 of chapter 359 of the laws of 1968, constituting the facil-
 ities development corporation act, as amended by chapter 58 of the  laws
 of 1987, is amended to read as follows:

 S. 6789                            39
 
   The provisions of this subdivision shall not apply to community mental
 health and [retardation] DEVELOPMENTAL DISABILITIES facilities.
   §  63.  Subdivision  6 of section 9 of section 1 of chapter 359 of the
 laws of 1968, constituting the facilities development  corporation  act,
 paragraphs  a  and  b  as  amended by chapter 58 of the laws of 1987, is
 amended to read as follows:
   6. Notwithstanding any provision of any general, special or local  law
 or of any charter:
   a. The governing body, as such term is defined in article forty-one OF
 TITLE  E of the mental hygiene law (except that with respect to the city
 of New York such term shall mean the board of estimate), of  a  city  or
 county  may, upon such terms and conditions as shall be approved by such
 governing body and for such consideration, if any, as may be  determined
 by such governing body, but not to exceed the cost of acquisition there-
 of  and  the  cost of improvements thereon, exclusive of any costs reim-
 bursed or to be reimbursed in accordance with the provisions of  article
 forty-one  OF  TITLE  E of the mental hygiene law otherwise, execute and
 deliver to the corporation a lease for a term not exceeding forty  years
 or a deed (i) conveying to the corporation real property and one or more
 community  mental  health  and  [retardation] DEVELOPMENTAL DISABILITIES
 facilities of the city or county located thereon, a portion of the costs
 of which facilities are eligible for state reimbursement  in  accordance
 with  the  provisions of article forty-one OF TITLE E or article twenty-
 five OF TITLE D of the mental hygiene  law  or  (ii)  conveying  to  the
 corporation  real property of the city or county or an interest therein,
 for the purpose of causing to be constructed,  reconstructed,  rehabili-
 tated  or  improved  thereon  one  or  more  community mental health and
 [retardation] DEVELOPMENTAL DISABILITIES  facilities  pursuant  to  this
 act,  such community mental health and [retardation] DEVELOPMENTAL DISA-
 BILITIES facilities to be made available to such county or city for  use
 and  occupancy  under lease, sublease or other agreement upon such terms
 and conditions as may be agreed upon,  including  terms  and  conditions
 relating  to length of terms, maintenance and repair of community mental
 health and [retardation] DEVELOPMENTAL  DISABILITIES  facilities  during
 such  term and the annual rentals to be paid therefor for the use there-
 of. The corporation is hereby authorized to accept  any  such  lease  or
 conveyance,  to hold such real property, to enter into a lease, sublease
 or other agreement with such city or county for the  purpose  of  making
 such  community  mental health and [retardation] DEVELOPMENTAL DISABILI-
 TIES facility so acquired or to be constructed, reconstructed, rehabili-
 tated or improved thereon available for use and occupancy by  such  city
 or  county,  and to lease or convey real property so acquired to the New
 York state housing finance agency or the medical care facilities finance
 agency, provided, however, that any such  further  lease  or  conveyance
 shall  be  solely for the purpose of causing community mental health and
 [retardation] DEVELOPMENTAL  DISABILITIES  facilities  to  be  acquired,
 constructed,  reconstructed,  rehabilitated  or  improved  thereon, such
 community mental health  and  [retardation]  DEVELOPMENTAL  DISABILITIES
 facilities to be made available to such city or county for use and occu-
 pancy under a lease, sublease or other agreement between the corporation
 and such city or county, upon such terms and conditions as may be agreed
 upon.  No  such lease or conveyance from the corporation to the New York
 state housing finance  agency  or  the  state  medical  care  facilities
 finance  agency  shall  be  for a consideration in excess of the cost of
 acquisition of such real property and the costs of improvements thereon.
 The appropriate commissioner of the department, on behalf of his OR  HER

 S. 6789                            40
 
 office,  and  the  director  of  the  budget  shall  approve all leases,
 subleases or agreements, whether between the corporation and  such  city
 or  county  or between the corporation and the housing finance agency or
 the  state  medical  care facilities finance agency, and the appropriate
 commissioner of the department shall be a party thereto. The appropriate
 division of the office of [alcoholism  and  substance  abuse]  ADDICTION
 SERVICES  AND  SUPPORTS shall also approve all such leases, subleases or
 agreements relating to the construction, reconstruction,  rehabilitation
 or  improvement  of  community  mental health and [retardation] DEVELOP-
 MENTAL DISABILITIES facilities,  constituting  alcoholism  or  substance
 abuse  facilities  for use in an alcoholism or substance abuse treatment
 program as defined in the mental hygiene law.
   b. In the event that the corporation shall  fail,  within  five  years
 after  the  date of such lease or conveyance, to construct, reconstruct,
 rehabilitate or improve the community mental  health  and  [retardation]
 DEVELOPMENTAL DISABILITIES facility or facilities thereon for which such
 lease  or  conveyance  was  made,  or  to  cause the same to be done, as
 provided for in a lease, sublease or other agreement entered  into  with
 such  city  or county, then, subject to the terms of any lease, sublease
 or other agreement undertaken by the  New  York  state  housing  finance
 agency or the state medical care facilities finance agency, with respect
 thereto,  such  real property and any facilities thereon shall revert to
 such city or county with right of re-entry thereupon, and such lease  or
 deed  shall  be made subject to such condition of reverter and re-entry;
 provided, however, that as a condition precedent to the exercise of such
 right of re-entry, such city or county shall pay an amount equal to  the
 sum of the purchase price of such real property, the depreciated cost of
 any  facility or facilities constructed, reconstructed, rehabilitated or
 improved thereon, and all other costs of the corporation or the New York
 state housing finance  agency  or  the  state  medical  care  facilities
 finance  agency  incident  to  the costs of the acquisition of such real
 property and the financing of  construction,  reconstruction,  rehabili-
 tation  or  improvement  relating to such facility or facilities, all as
 provided in the aforesaid lease, sublease  or  other  agreement  entered
 into with such city or county.
   c.  No  real  property  or  interest  therein shall be acquired by the
 corporation pursuant to this subdivision unless title thereto shall have
 been approved by the attorney general.
   d. The attorney general shall pass upon the form and  sufficiency  and
 manner  of  execution of any deed of conveyance and of any lease of real
 property authorized to be given under this subdivision by  any  city  or
 county  to the corporation, and any lease, sublease or agreement between
 the corporation and a city or county, and the same shall not  be  effec-
 tive unless such deed, lease, sublease or agreement shall be so approved
 by him.
   e.  The  cost  of construction, acquisition, reconstruction, rehabili-
 tation or improvement  of  community  mental  health  and  [retardation]
 DEVELOPMENTAL  DISABILITIES  facilities  undertaken  by  the corporation
 pursuant to this act may include the cost of  acquisition  of  any  real
 property  leased  or conveyed to the corporation pursuant to paragraph a
 of this subdivision [six] and  the  cost  of  the  original  furnishing,
 equipment, machinery and apparatus as determined by the corporation.
   f. The provisions of this act shall not be deemed to prevent a city or
 county  from financing the cost of constructing, acquiring, reconstruct-
 ing, rehabilitating or improving a community mental health and [retarda-

 S. 6789                            41

 tion] DEVELOPMENTAL DISABILITIES facility by the issuance  of  bonds  or
 capital notes of such city or county pursuant to the local finance law.
   §  64.  The  fifth undesignated paragraph of section 2 of section 1 of
 chapter 392 of the laws of 1973, constituting the medical  care  facili-
 ties  finance agency act, as added by chapter 58 of the laws of 1987, is
 amended to read as follows:
   Prompt provision of well-equipped, modern hospitals, schools and other
 facilities related to the care, maintenance and  treatment  of  mentally
 ill[,  mentally retarded] and INTELLECTUALLY OR developmentally disabled
 persons is also needed in the state. In order to encourage  the  invest-
 ment  of  private  capital  in  such hospitals, schools and other mental
 health services facilities and  to  assure  their  timely  construction,
 acquisition,  reconstruction,  rehabilitation  and  improvement,  or the
 refinancing thereof, the New York state medical care facilities  finance
 agency  should be empowered, through the issuance of its bonds, notes or
 other obligations to the private investing public, to obtain  all  or  a
 portion of the funds necessary to finance the same and to meet the needs
 of patients and staff at such facilities.
   §  65. Subdivisions 4 and 6 of section 5-a of section 1 of chapter 392
 of the laws of 1973, constituting the medical  care  facilities  finance
 agency act, subdivision 4 as amended by chapter 389 of the laws of 1987,
 and  subdivision  6  as  amended by chapter 672 of the laws of 2019, are
 amended to read as follows:
   4. As used in this section or in  connection  with  a  federally-aided
 mortgage  loan, the term "project" means a specific work or improvement,
 whether or not to effectuate all or any part of  a  plan,  and  includes
 lands,   buildings,   improvements,   fixtures   and  personal  property
 constructed,   acquired,   reconstructed,   refinanced,   rehabilitated,
 improved,  managed, owned or operated by a non-profit corporation pursu-
 ant to this section, to provide hospital, residential health care, resi-
 dential facilities for [the mentally  retarded  and]  INTELLECTUALLY  OR
 developmentally  disabled  PERSONS or [the] mentally disabled PERSONS or
 for the  care,  treatment,  training  and  education  of  [the  mentally
 retarded  and]  INTELLECTUALLY  OR  developmentally  disabled PERSONS or
 [the] mentally disabled PERSONS or comprehensive health services facili-
 ties and such related incidental and appurtenant facilities as the agen-
 cy may approve. The term "project" shall also mean a  separate  work  or
 improvement,  including lands, buildings, fixtures and personal property
 related thereto, managed, owned or operated by a non-profit  corporation
 pursuant  to this section to provide such services, functions, capabili-
 ties and facilities as may be convenient or desirable for the  operation
 of  a  hospital,  a  residential  health  care  or  comprehensive health
 services facility.
   6. As used in this section or in connection with federally-aided mort-
 gage loan regarding residential facilities for  [the  mentally  retarded
 and] INTELLECTUALLY OR developmentally disabled PERSONS or [the] mental-
 ly  disabled  PERSONS or for the care, treatment, training and education
 of [the mentally retarded and] INTELLECTUALLY OR  developmentally  disa-
 bled  PERSONS or [the] mentally disabled PERSONS the term "commissioner"
 shall also mean the commissioner of mental health or the commissioner of
 the office for people with developmental disabilities.
   § 66. Paragraph a of subdivision 1 of section  9-a  of  section  1  of
 chapter  392  of the laws of 1973, constituting the medical care facili-
 ties finance agency act, as amended by chapter 166 of the laws of  1991,
 is amended to read as follows:

 S. 6789                            42

   a.  "Mental  health  services  facility" shall mean a building, a unit
 within a building, a laboratory, a classroom, a housing unit,  a  dining
 hall,  an  activities  center,  a  library, real property of any kind or
 description, or any structure on or improvement to real property of  any
 kind  or  description, including fixtures and equipment which may or may
 not be an integral  part  of  any  such  building,  unit,  structure  or
 improvement, a walkway, a roadway or a parking lot, and improvements and
 connections  for  water, sewer, gas, electrical, telephone, heating, air
 conditioning and other utility services, or a combination of any of  the
 foregoing, whether for patient care and treatment or staff, staff family
 or  service  use,  located  at or related to any psychiatric center, any
 developmental center, or any state psychiatric or research institute  or
 other  facility  now or hereafter established under the state department
 of mental hygiene. A mental health services facility shall also mean and
 include a residential care center for adults, a "community mental health
 and [retardation] DEVELOPMENTAL DISABILITIES facility", and a  state  or
 voluntary operated treatment facility for use in the conduct of an alco-
 holism  or  substance  abuse  treatment program as defined in the mental
 hygiene law, unless such residential care center for  adults,  community
 mental  health  and [retardation] DEVELOPMENTAL DISABILITIES facility or
 alcoholism or substance abuse facility  is  expressly  excepted  or  the
 context  clearly  requires  otherwise.  The definition contained in this
 subdivision shall not be construed  to  exclude  therefrom  a  facility,
 whether  or not owned or leased by a voluntary agency, to be made avail-
 able under lease, or sublease, from the  facilities  development  corpo-
 ration  to a voluntary agency at the request of the commissioners of the
 offices and directors of the  divisions  of  the  department  of  mental
 hygiene  having  jurisdiction thereof for use in providing services in a
 residential care center for adults, community mental health and  [retar-
 dation]  DEVELOPMENTAL  DISABILITIES services, or for use in the conduct
 of an alcoholism or substance abuse treatment program. For  purposes  of
 this  section  mental  health  services  facility shall also mean mental
 hygiene facility as defined in subdivision ten of section three  of  the
 facilities development corporation act.
   §  67. Whenever the term "intellectual disability" or "intellectual or
 developmental disability" or any equivalent expression thereof  is  used
 in any provision of law amended pursuant to this act, such term shall be
 deemed  to  mean  the  same as the definition of the term "developmental
 disability" pursuant to subdivision 22 of section  1.03  of  the  mental
 hygiene law.
   §  68. This act shall take effect immediately, provided, however, that
 the amendments to paragraph (k) of subdivision 1 of section 364-j of the
 social services law made by section fifty of this act shall  not  affect
 the  repeal  of such section and shall be deemed repealed therewith; and
 provided further, that the amendments to subclause (iii) of  clause  (c)
 of subparagraph 4 of paragraph b of subdivision 1 of section 4402 of the
 education  law made by section seventeen of this act shall be subject to
 the expiration and reversion of such subdivision pursuant to subdivision
 d of section 27 of chapter 378 of the laws of 2007, as amended when upon
 such date the provisions of section eighteen  of  this  act  shall  take
 effect.